"Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets," CEO Thomas Nielsen said in a statement. "It represents an extraordinary opportunity for us to generate additional capital to boost investments in new businesses and markets while still protecting our existing business."
The two companies also agreed to collaborate on future support and development of the video codec software and related products.
"We look forward to working with Intel to support the development of the next-generation video codec software and to expanding our relationship into new products and markets," said Nielsen.
RealNetworks does not anticipate that the deal will have any material impact on its businesses.
RNWK holders love this deal: the stock is up $2.44, or 33.2%, to $9.79.