A consortium of Apple, EMC, Ericsson, Microsoft, RIM and Sony has eventually redeemed the day prior to this via the 6000 patent Nortel for $four.5 billion. The stake used to be value it: the portfolio of mental property got or filed by means of Nortel could be very extensive: wi-fi, Web search, social networks and new applied sciences of information transmission for cell units.
The most important loser on this case, on the other hand, is that Google had set the entry bar excessive by way of striking $ 900 million. The web massive was once the favourite. He no longer simplest had the monetary way at its disposal, but it surely had a virtually crucial that Google has a patent portfolio very small in comparison with its rivals.
The public sale formally began Monday with five potential buyers, including two consortia: Apple, Google, Intel, a consortium of Microsoft, Sony, EMC, and a second led by RPX, a company specializing in the acquisition of patents.
According to preliminary accounts of people who have closely followed the auction, the fight was fierce. On the morning of day one, Intel has set the tone by offering $ 1.5 billion , an amount that was already higher than analysts' expectations.
Seeing that the auction had gone on a rather unusual, RPX reported at the end of the first round of its intention to withdraw, not excluding, however, to return if she was a partner.
The auction continued to rise gradually while negotiations were beginning to take place behind the scenes. Tuesday evening, the consortium led by Ericsson ceased to bid and went looking for a partner to win the jackpot without spending more. The occasion ally turned out to be Apple, which could unite with Google.
The day after, Intel began discussions with the consortium Ericsson and Google. A priori, the giant semiconductor chose Google, but negotiations were unsuccessful and Intel withdrew.
The search engine was alone, facing an alliance of Apple, EMC, Ericsson, Microsoft, RIM and Sony, whose cumulative cash reserves exceed 100 billion dollars.
The case seemed to play, but Google did not give up easily. The two actors outdid to blow $ 100 million . Very quickly, the auction reached $ 3 billion.
It was at this time that Google tried a gamble. Instead of offering a little more, she asked permission to go freely and to $ 4 billion on the table. A priori, it was the maximum amount it had set. But the consortium offered $ 500 million over and takes all.
It should be noted that Google has a special way to bid . Instead of using round numbers, the giant of the Internet was based on mathematical constants: Brun's constant , Meissel-Mertens constant , or feet when she wanted to put more than three billion dollars on table. For people who attended the auction, Google's strategy was not very clear. They did not know whether this way of bidding was a way to show that it was extremely confident or a way to challenge the establishment.
Now, consortium members will share the spoils. According to Robert X.Cringely , RIM and Ericsson have between them made $1.1 billion for a license to all patents. For its part, Apple would have two billion on the table to get their hands on patents on 4G and others which we will call anti-Google .
The Internet giant will always be a consolation prize that is still adding salt to the various consortium members. For the latter, the goal now is simple: it is not to receive royalties by the patents build on hard-won, but to the skin to Android. There could be an escalating court in the months to come.
Still according to Cringely, Google will certainly start a race against time. The Internet giant is likely to do everything possible to delay the deal, time to have an arsenal of patents worthy of the name. It must still receive approval from the Canadian and American justice during a joint hearing on July 11 and is expected to close in the third quarter.