Kodak (EKDKQ) Slumps as Bidding for Patent Portfolio Lacks Gusto
Tweet Send to a Friend
Eastman Kodak (OTCBB: EKDKQ) is getting hit Tuesday following reports that efforts to sell-off some of its intellectual property is hitting some snags.
According to the WSJ, bids for Kodak's 1,100 digital patent portfolio are below the $2.6 billion that the company said they were worth. Far below.
Leading the bidding process are groups headed by Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG). Initial bids are said to be between $150 million and $250 million, though those numbers could rise rapidly should one look to keep the IP out of the others hands.
One person familiar with the matter said an offer above $600 million would be viewed as "healthy." Reasoning is that the portfolio has been heavily licensed and there are no mobile-centric patents included.
Numbers for Kodak: it has a $950 million bankruptcy loan with Citi of which it drew $700 million from and wrote $114 million in letters of credit, and it had $1.3 billion of cash at the end of June.
Winning bids will be selected on August 13th. Shares of Kodak are down 27 percent on the session Tuesday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
According to the WSJ, bids for Kodak's 1,100 digital patent portfolio are below the $2.6 billion that the company said they were worth. Far below.
Leading the bidding process are groups headed by Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG). Initial bids are said to be between $150 million and $250 million, though those numbers could rise rapidly should one look to keep the IP out of the others hands.
One person familiar with the matter said an offer above $600 million would be viewed as "healthy." Reasoning is that the portfolio has been heavily licensed and there are no mobile-centric patents included.
Numbers for Kodak: it has a $950 million bankruptcy loan with Citi of which it drew $700 million from and wrote $114 million in letters of credit, and it had $1.3 billion of cash at the end of June.
Winning bids will be selected on August 13th. Shares of Kodak are down 27 percent on the session Tuesday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Intuitive Surgical (ISRG) Jury Reaches Positive Verdict in Robot Case; Shares Rise
- Microsoft (MSFT) wins case brought by Google's (GOOG) Motorola unit over Xbox - Bloomberg
- Brocade (BRCD), A10 Settle Litigation; Brocade to Get $5M Cash, $70M Conv. Note
Create E-mail Alert Related Categories
Insiders' Blog, LitigationRelated Entities
Citi, Bankruptcy
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
