Yahoo is selling its search technology, patents – a repeat of Nortel’s auction or InterDigital’s failed effort to sell itself?
Being able to monetize patent portfolio is a key strategy in our Asset-Lite business model, but that can take many forms. From an outright sale to a highly profitable licensing business model like we’ve seen at Qualcomm, Dolby and Rambus, patents can drive significant cash flow. Of course this hinges on the competitive position and time to patent expiration. Ever since Nortel sold its patent portfolio to a host of companies including Apple, Microsoft, Blackberry, EMC, and Sony, we’ve seen some high attempts at patent sales, but not all have hit expected sale price levels. With some reports putting Yahoo’s patent portfolio at $1.5 billion with others at $4 billion, odds are there will much made of this in the coming weeks, but the proof will be in the winning bid.
Yahoo has hired investment bank Black Stone IP to handle the sell-off of its patent portfolio, which includes intellectual property that dates back to 1996. Yahoo confirmed that it was exploring the sale of 3,000 patents, and a source told the WSJ that Yahoo will take bids until mid-June.
Source: Yahoo is selling its search technology, patents – Business Insider
