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Nortel auctions final patents for US$4.5 billion

A man walks past a company sign at a Nortel Networks office tower in Toronto on Feb. 25, 2009. (THE CANADIAN PRESS/Nathan Denette) ottawa generic nortel
A man walks past a company sign at a Nortel Networks office tower in Toronto on Feb. 25, 2009. (THE CANADIAN PRESS/Nathan Denette)

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Date: Friday Jul. 1, 2011 9:59 AM ET

Fallen Canadian technology giant Nortel Networks Corp. has sold off all of its remaining patents to a group of major companies for US$4.5 billion.

The consortium consists of Ontario's Research In Motion, Apple, EMC, Ericsson, Microsoft and Sony.

RIM, the Waterloo, Ont.-based Blackberry maker, says its share of the cost was about US$770 million.

There were more than 6,000 patents sold in the multiday auction – a portfolio of tech covering everything from wireless to data networking to Internet search and social networking tools.

The consortium's winning bid is a blow to Google, which bid US$900 million for Nortel's patent rights in April. The Internet search behemoth is increasingly looking for more intellectual rights defences for its rapidly expanding list of products, including its Android mobile operating system.

The sale is still subject to Canadian and U.S. court approval which could happen as early as July 11 at a joint hearing.

Nortel's court protection from creditors had earlier been extended to Dec. 14, to give it more time sell off its assets.

"The size and dollar value for this transaction is unprecedented, as was the significant interest in the portfolio among major companies around the world," George Riedel, Nortel's chief strategy officer, said of the sale.

Nortel has said it does not expect its shareholders to receive any value during its asset selloff.

Over the last few years, Nortel sold its wireless network business to Ericsson for $1.13 billion and its enterprise solutions business to Avaya Inc. for $689 million.

Earlier this year, about 400 former Nortel employees had their long-term disability benefits cut off, as part of a court-approved pension settlement between the company and its former employees

Comments are now closed for this story

Bob in Chatham
said

If the investors who supported this company get nothing, who is getting it ?


Big A
said

It is time the harper governent implements its policies to change the bankruptcy laws which may prevent these new found funds from being put back to the employees. I am not and never was a union person, and never will be. However the workers and shareholders of this country need to be protected more. Harper has these strategies (Federal SEC etc etc,) and now he needs to stop these judges from giving a decision in favour of the employees. One need only to check out Biosyntech and Raymor to name a couple and in the past the Air Canada bankruptcy which alienated the previous shareholders from the newly formed Air Canada (same company), to see why these measures are needed.


SH @ Ontario
said

Ex-Nortel employees should go after that money and don't expect government/taxpayers to bail them out.


Lisa Vollmar
said

It is not just the disability benefits that were cut off. As of January 1st of this year pensioners lost their health benefits and are now in jeopardy of losing part or all of their pensions. How is this fair? Petitions to the government to help save these pensioners did not result in any assistance. Hardly fair with all the money extended to car and airlines.


ter... alberta
said

Good .... now they can pay all of the employees they stiffed


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