Deals

You are here: Home : Topics A-Z : Deals

Welcome to the IP Bubble

As tech companies buy and sell patents for escalating sums of money, it's beginning to look a lot like a bubble. What should CFOs do to value their companies' intellectual property accurately and diligently?

May 15, 2012

Last summer Google bought cell-phone maker Motorola Mobility for $12.5 billion, largely for its treasure chest of 17,000 patents.

Last month, preparing for its initial public offering, Facebook paid Microsoft $550 million for about 625 of the 925 patents Microsoft had just purchased from AOL for $1 billion. What's in all those patents, no one will say. It's possible that no one -- not even the folks at Facebook and Microsoft-know what they all contain, as software code is extremely difficult to catalog, classify, and track. Referring to Motorola's 17,000 patents, patent litigator and IP monetization practice leader for DeWitt Ross & Stevens S.C. Joseph Miotke says, "It would take centuries to map out all those patents." Mapping AOL's might take proportionally fewer centuries. Read more...

Follow this topic

More Deals Articles

  • LinkedIn Builds a Facebook for Grown-Ups

    The networking company's first-quarter revenue more than doubles as it hones in on professionals and professional services. May 4, 2012

  • Venturing Back

    A bad year for venture-backed deals ended with signs of hope for 2010. January 5, 2010

  • Waiting for the IPO

    Finance chiefs eager to take their companies public in 2010 must weigh a host of factors. December 22, 2009

  • Strategic Buyers Still in the Catbird Seat

    Today's M&A market remains weak, but strategic buyers will lead a pickup in deal activity in 2010, according to a new survey of dealmakers. December 11, 2009

  • Deal With It

    Banks aren't lending, investor defaults are looming, and mark-to-market is a pain. But private equity CFOs are forging a path through the downturn. April 2, 2009

  • Deals: There Will Be Oil ... in Calgary, Anyway

    In our M&A Roundup for the week ended March 29, Suncor's $18.39-billion purchase of Petro-Canada tops the sale of Calgary-based Oilexco's North Sea assets. Deloitte, Time Warner also do some buying. March 30, 2009

  • Deals: Fertilizer, Roller Coasters, and Gold

    In our M&A Roundup for the week ended March 22, a diverse lot of billion-dollar deals helps keep the totals respectable — though far short of the prior "Merck Week." March 23, 2009

  • Deals: Pharma Is the Cure for M&A's Blahs

    In our M&A Roundup for the week ended March 15, Merck-Schering is followed — at a distance — by Gilead Sciences buying CV Therapeutics. Behind them, an eclectic mix. March 16, 2009

  • Deals: A Copy Cat Play with Merck in Wings

    In our M&A Roundup for the week ended March 8, another solid combination of resources, energy, and pharma deals — on the eve of today's Schering-Plough announcement. March 9, 2009

Related White Papers

» More Related White Papers

advertisement

Business Solutions Center

» More Business Solutions Center Links

advertisement