Kodak (EK) Confirms Plans to Sell Patent Portfolio; Shares Up 12% After Hours
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Eastman Kodak (NYSE: EK) shares are en fuego after hours Wednesday following reports the company is moving to sell 10 percent, or about 1,100 digital patents, of its patent portfolio.
According to the Wall Street Journal, Kodak has retained Lazard to begin marketing the portfolio. A two-part auction will occur for the sale.
Hoping to capitalize on a recent "patent bubble" (Nortel Networks sold patents at the end of June and last week Google (Nasdaq: GOOG) announced it will acquire Motorola Mobility (NYSE: MMI), largely for this intellectual property), Eastman is looking to sell to a strategic wireless industry company looking for more patent protection.
Some question the move, as Eastman has struck lucrative deals with some of the patents its putting on the block, which may put the buyer at risk of lawsuits. Eastman derived $1.9 billion in 2008 through 2010 on the deals.
Kodak will still be able to use the patents after the sale, but will no longer be able to litigate them.
After surging 25 percent Wednesday following rumors of a deal, shares are nearly 12 percent higher in this evening's after-hours session. The stock last traded at $2.94.
According to the Wall Street Journal, Kodak has retained Lazard to begin marketing the portfolio. A two-part auction will occur for the sale.
Hoping to capitalize on a recent "patent bubble" (Nortel Networks sold patents at the end of June and last week Google (Nasdaq: GOOG) announced it will acquire Motorola Mobility (NYSE: MMI), largely for this intellectual property), Eastman is looking to sell to a strategic wireless industry company looking for more patent protection.
Some question the move, as Eastman has struck lucrative deals with some of the patents its putting on the block, which may put the buyer at risk of lawsuits. Eastman derived $1.9 billion in 2008 through 2010 on the deals.
Kodak will still be able to use the patents after the sale, but will no longer be able to litigate them.
After surging 25 percent Wednesday following rumors of a deal, shares are nearly 12 percent higher in this evening's after-hours session. The stock last traded at $2.94.
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