BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

RealNetwork To Sell Patents, Video Codec To Intel For $120M

This article is more than 10 years old.

RealNetworks this morning said it has agreed to sell 190 patents and 170 patent applications and its next-generation video codec software to Intel for $120 million in cash. Real will retain certain rights to keep using the patents in current and future products.

"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.