InterDigital drops sale plans, to focus on licensing

News Wireless Global 24 JAN 2012
InterDigital drops sale plans, to focus on licensing
InterDigital has abandoned plans to sell the company and will instead focus on licensing its extensive patent portfolio. The company started a strategic review six months ago with the idea it could lead to takeover offers. However no offer for the entire company was forthcoming. InterDigital now plans to focus on further licensing of its portfolio of over 19,500 patents and patent applications based on cellular technologies, moving for 3G to LTE agreements. In addition, it may look at selling part of the portfolio or partnering arrangements, such as for its unlicensed mobile infrastructure portfolio. It also has several 3G and LTE terminal unit patents not core to its main licensing business that could be put up for sale. The company made the announcement alongside preliminary fourth-quarter results showing net income of USD 21.0 million, EPS at USD 0.46 million and revenues of USD 74.2 million. Going forward, the company said it plans to base executive compensation around the goal of achieving at least USD 800 million in recurring annual licence revenues within three to five years.

Categories:

Mobile

Companies:

InterDigital

Regions:

Global

Tags:

Financial figures, Wireless, Wholesale, Corporate strategy, M&A buyouts & divestments, Research and development

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