Back when Kodak announced that it would be filing for bankruptcy and selling off a large number of its patents to help with restructuring efforts, we all knew this sell off would be huge. As it turns out, that feeling was correct, with major players in the tech field like Google, Apple, and Microsoft all vying for a slice of that patent pie. Today a Judge approved the deal for those three tech giants to buy up Kodak’s patents, to the tune of $527 million.
That certainly seems like a significant amount of money, but it’s actually a very depressing amount for Kodak. The company was originally hoping to net $2 billion for the sale of its patents, so the amount it’s actually getting is a fair bit less than its target. In any case, Kodak will now use this money to climb out of bankruptcy, hopefully becoming a more efficient company in the process.
What’s more, this sale marks the end of a lot of patent litigation for Kodak, which is most important aspects of this deal. In all, 1,100 patents were sold off, but Google, Microsoft, and Apple weren’t the only buyers. It seems that a lot of big names were interested in snagging some Kodak patents, with companies like Facebook, Huawei, RIM, Adobe, Samsung, and Fujifilm also participating in the purchase.
Now Kodak has a tough road ahead of it. It’s never easy for a company to bounce back from bankruptcy, and it might be even harder for Kodak considering how much ground it has lost in recent years. Still, shedding a lot of pending litigation while raising a little cash on the side is definitely a good start, so we’ll just have to watch and see what happens to Kodak from here on out.
[via The Wall Street Journal]