Bloomberg reports U.S. Bankruptcy Judge Allan Gropper in Manhattan approved the $527 million deal Apple, Google and other tech companies bid to purchase patents from Kodak. The latter was “disappointed” with the final price, as a previous advisory firm estimated the company could get $2 billion out of the patents:
Michael Torkin, an attorney for Kodak, said the sale agreement is the best deal the company could get and that it achieves “patent peace” by settling litigation. Kodak has said it will receive about $525 million from the transaction.
The reason for the low bid was due to the fact Apple and Google, along with RIM, Microsoft, FaceBook, Amazon, Samsung, Adobe, Shutterfly, Huawei, Fujifilm, LG and HTC all joined together for Kodak’s patents, only paying for specific patents they required. Apple’s group included Microsoft and Intellectual Management LLC, whereas Google’s coalition included RPX Corp. and other Asian Android OEMs.
Kodak had no choice but to sell these patents to raise financing so it could exit bankruptcy in the first half of this year, as its loan is due in July of 2013. It’s the end of an era for Kodak.