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Nortel hoping to sell patent portfolio to Google in landmark US$900 million deal

Nortel Networks Corp. announced this week that it has entered into a "stalking horse" asset sale agreement with Google Inc. for the sale of all of the company's remaining patents and patent applications for a cash purchase price of...


April 6, 2011  


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Nortel Networks Corp. announced this week that it has entered into a “stalking horse” asset sale agreement with Google Inc. for the sale of all of the company’s remaining patents and patent applications for a cash purchase price of US$900 million.

The agreement includes the planned sale of approximately 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patent portfolios. The company said in a release that the “extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking.”

Nortel will file the agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code.

A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice. Following completion of the bidding process, final approval of the U.S. and Canadian courts will be required.