RE:RE:Black berry announces sale of patent portfolio........If WiLan's portfoilio of patents / licenses is so valuable, why hasn't a buyer who will pay what QTRH beieves is fair value scooped it up yet...?
I remember people saying Nortel had a very impressive collection of patents when they first hit hard times, and we all know how that story ended.
Same has been said about BB. As mentioned by other posters, according to the new deal, BB patents must remain profitable going forward if BB wants to receive the majority of the payout:
"Up to" $900M Total (Newly Announced deal with Malikie)
$200M:
$170M upon close
$30M more within three years' time
The Other $700M: Annual cash royalties from the profits generated from the BlackBerry patents, on the following basis:
8% of the first $500 million of profits;
15% of the next $250 million of profits;
30% of the next $250 million of profits; and
50% of all subsequent profits
vs.
$600M Total (previous deal with Catapult):
$450M upon close.
$150M Promissory Note (five annual installments of $30M each starting on the 3rd anniversary of the closing date)
I think it's obvious that the Caapult deal was much better (as the saying goes: a bird in the hand is worth two in the bush), but BB felt that deal was in jeoprardy back in June 2022 and was looking for other potential buyers. It took them eight months to land this Malikie deal, so I assume this was the best BB could get for their patent portfolio.