Ericsson ((OMX: ERIC B, NASDAQ: ERIC) was a part of the winning consortium in bidding for all of Nortel Networks Corporation’s remaining patents. As stated in Nortel’s announcement, other companies in the consortium are Apple, EMC, Microsoft, Research In Motion and Sony.
The entire portfolio contains over 6000 patents and patent applications from ICT industry. The cash purchase price is 4.5 billion US. Ericsson’s share of the purchase price is 340 million. The deal is expected to be closed in Q3 pending approval from by the United States and Canadian Bankruptcy Courts.
Time will tell if this is a good deal for Ericsson; one cannot even say for sure what exactly Ericsson is getting without more accurate disclosure. In the absence of anything more tangible and slight upward tick in risk, Ericsson was down slightly on Friday.
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