Friday, March 25, 2011

Bloomberg: Kodak Says $1B at Stake in Apple, RIM Patent Dispute

From Bloomberg:
Kodak used the ITC to gain $550 million from Samsung and $414 million from LG for allegedly infringing the same patent as in the Apple and RIM cases.

Kodak, a 131-year-old company that popularized photography with the Brownie and Instamatic cameras, generated $838 million from patents last year. The company has told investors it expects to average $250 million to $350 million in annual revenue from intellectual property licensing through 2013. That figure doesn’t include potential Apple and RIM royalties.

EK's current market cap is only ~ $842M.  During the financial crisis, it dropped to barely above $600M.  The $683M operating loss for 2010 and negative $1B book value make an overall acquisition far less attractive, but at some point, I won't be surprised to see the IP hit the market to cover the wind down of the rest of the failing business.

While this could be make or break for Kodak, Apple generated $9.8B in cash flow from operations last quarter alone.

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