Apple and Google Place Joint $500 Million Bid to Buy Kodak’s Patents

Bloomberg reports Apple and Google have teamed up to buy Kodak’s patents, offering a joint bid of more than $500 million:

Apple Inc. and Google Inc. have joined forces to offer more than $500 million to buy Eastman Kodak Co.’s patents out of bankruptcy, said two people with knowledge of the situation.

The two companies, competing for dominance of the smartphone market, have partnered after leading two separate consortia this summer to buy Kodak’s 1,100 imaging patents, said the people, who asked not to be identified because the process is private.

According to sources, Apple is leading a group that includes Microsoft and Intellectual Management LLC, looking to grab Kodak’s patents. Google’s coalition includes patent aggregator RPX Corp. and Asian Android OEMs.

The Wall Street Journal reported similar news back in July of this year, noting 1,100 Kodak patents are up for grabs, with a specific mention of three hardware companies involved on the Google side: Samsung, LG and HTC.

For these fierce rivals to collaborate on the bidding process, it will lower the value at which Kodak hopes to raise in a competitive auction, which the latter mentioned at one point could be worth $2.2 to $2.6 billion. Kodak’s bankruptcy loan is due in July of 2013.