Kodak has been putting more of an emphasis on its printer business lately, picking up market share from Hewlett-Packard (HP) and Canon (CAJ) along the way, attracting consumers with more printing features and less-expensive ink. Even with a patent sale, Kodak intends to hold onto the licensing rights to its proprietary technology.
CEO Perez is looking for buyers willing to pay cash for the patents, but only wants to sell "the part of the portfolio that does not apply to the core investments and the future of the company."
The marketing of patents is a smart move for Kodak -- a company that has struggled after years of annual losses -- particularly in light of M&A news last month that Google acquired Motorola Mobility Holdings (MMI) at a hefty premium, largely for the accumulation of 17,000 technology patents the target holds, as the search giant moved to better compete with Apple's iPhone.
Despite Kodak's $1.2 billion pension shortfall, potential acquirers like Microsoft (MSFT) and Samsung Electronics could benefit greatly from its patents -- technologies used in a bulky 85% of all digital cameras and smartphones -- Rafferty Capital Markets told Bloomberg last month. Investment bank Lazard began marketing Kodak's roster of patents in August, and interested parties included a large wireless provider, according to reports in the Journal.Kodak shares fell 0.7% to $1.38 at midday Monday. The stock remains down around 74% year to date. -- Written by Miriam Marcus Reimer in New York.
>To contact the writer of this article, click here: Miriam Reimer.
>To follow the writer on Twitter, go to http://twitter.com/miriamsmarket.
>To submit a news tip, send an email to: firstname.lastname@example.org.
>>See our new stock quote page.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV