Why Does Apple Need $76.2 Billion In Cash? For Patents
Jul. 25 2011 - 8:16 pm |
After Apple Chief Steve Jobs introduced the iPhone, with its multi-touch interface, in 2007, he declared simply “and boy have we patented it.” It turns out that wasn’t enough to stop the rest of the industry from aping the iPhone’s interface. So Apple might just have to try patenting the rest of the industry, too.
Apple can certainly afford to amass a huge wireless patent portfolio. As of the end of June, Apple had more than $76.2 billion in cash and short-term securities. It probably has more now. Where can it put some of that money to work next? On patents, UBS analyst Ben Reitzes win rote a note to investors Monday.
Earlier this month a judge approved a $4.5 billion bid by Apple, EMC, Ericcsson, Microsoft, Research In Motion, and sony for 6000 patents held by bankrupt Canadian telecommunications gear vendor Nortel.
In a note to investors Monday, Reitzes estimates Apple contributed $2.6 billion to the deal. Apple will likely use those patents to “create an impediment for Google and Android.” At the very least, licensing fees could help offset its settlement with Finnish handset vendor Nokia earlier this year.
Apple is likely hungry for more. Reitzes writes that other targets could include InterDigital, Eastmak Kodak — which has outstanding patent suits against RIM and Apple. Kodak’s patent trove alone could be worth “hundreds of millions,” Reitzes figures.
That’s a steep price for almost anyone, but mere pocket change for Apple.
http://blogs.forbes.com/briancaulfield/2011/07/25/why-does-apple-need-76-2-billion-in-cash-for-patents/?partner=yahootix
