This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pendrell Corporation To Acquire Control Of ContentGuard

Pendrell Corporation (NASDAQ: PCO) (“Pendrell” or “the Company”) announced today that its subsidiary, Pendrell Technologies LLC, entered into a definitive agreement to acquire 90.1% of privately-held ContentGuard Holdings, Inc., a leading inventor, developer and licensor of digital rights management (DRM) and related content distribution patents and technologies. Following the closing of the transaction, Time Warner (NYSE: TWX) will own 9.9% of ContentGuard and will be entitled to appoint a representative to the ContentGuard board of directors. The Company will pay $90.1 million in cash to the current ContentGuard shareholders. Closing of the transaction remains subject to a filing under Hart-Scott-Rodino and the expiration of the applicable thirty day waiting period. ContentGuard and its management team will continue to be based in El Segundo, California.

Originally spun out of Xerox PARC in 2000, ContentGuard has been a pioneering inventor and developer of foundational DRM and content distribution technologies which enable the creation of new digital content business models and enterprise content security solutions. ContentGuard’s intellectual property portfolio features more than 260 issued patents and over 160 pending patent applications worldwide. ContentGuard has built strong relationships with companies that facilitate the seamless movement of digital content across connected devices, in both the consumer and enterprise segments, by offering DRM solutions that maintain the rights and economic interests of content owners while enabling content users to access content based on established standards that are device, network and operating system agnostic. The company has a robust history of technology licensing transactions and revenues. Numerous leading technology companies have recognized the value of ContentGuard’s intellectual property and have entered into licensing agreements with ContentGuard, including LG Electronics, Microsoft Corporation, Nokia, Panasonic, Sharp, Sony, Sony Ericsson, Toshiba, Casio Hitachi Mobile Communications, Technicolor, Time Warner, Inc. and Xerox Corporation.

“With approximately 50% of handsets worldwide licensed by ContentGuard, and substantial historical revenues, ContentGuard’s patent portfolio is well-proven. We believe that ContentGuard’s DRM technologies set the standard for protecting content in virtually every instance where content is transferred to a connected device – from mobile phones to tablets, set top boxes, e-readers, game consoles, DVD players, personal computer and televisions,” commented Ben Wolff, chief executive officer of Pendrell. “Consumer purchases of content over the Internet have been growing rapidly because of the ability of these devices to access all forms of digital content. Similarly, businesses are increasingly reliant on enterprise content management solutions invented by ContentGuard to manage and protect access to ever increasing quantities of mission-critical digital documentation. These growth trends underscore the opportunity for ContentGuard.”

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs