Tech+IP Announces New BlackBerry Patent Deal to Sell Substantially All of Its Non-Core Patents and Applications

Rhea-AI Summary

Tech+IP Advisory has announced a significant patent sale transaction with BlackBerry (NYSE:BB), involving nearly 32,000 non-core patents, mainly related to mobile devices, messaging, and wireless networking. The deal, valued at up to $900 million, excludes core patents essential for BlackBerry's operations. Regulatory approvals from Canadian and U.S. authorities are required. The advisory firm highlighted the resilience of this process amidst global economic challenges, including inflation and market instability. Executives believe this transaction is a strategic move to redeploy capital into technology acquisitions and enhance shareholder value.

Positive

• The patent sale transaction is valued at up to $900 million.
• Involves nearly 32,000 patents, providing significant liquidity.
• Excludes core patents, ensuring no disruption to BlackBerry's main operations.

Negative

• The need for regulatory approvals could delay the transaction.
• Potential market volatility and economic challenges could impact final sale outcomes.

One of the largest PE-backed patent deals announced, despite economic headwinds

WASHINGTON, March 21, 2023 /PRNewswire/ -- Tech+IP, the leading boutique advisory firm focused on advanced technology and intellectual property based in the Washington DC area and Europe (www.techip.cc), has been advising BlackBerry Limited (NYSE:BB) (TSX: BB) since the inception of this significant non-core patent transaction, the latest iteration of which was announced by BlackBerry earlier today. https://www.prnewswire.com/news-releases/blackberry-announces-new-patent-sale-transaction-with-leading-patent-monetization-company-for-up-to-900-million-301777185.html

The deal includes close to 32,000 patents and applications relating primarily to mobile devices, messaging and wireless networking and excludes patents and applications that are necessary to support BlackBerry's current core business operations and a set of non-core patent families relating to mobile devices, primarily standards essential patents. The newly announced deal needs to obtain Canadian and U.S. regulatory approvals.

"While those in the industry know this process has been running for some time, stated Ed Fish, co-Founder and Managing Director of Tech+IP Advisory, what is noteworthy is the quality of these patents -- important to many markets but non-core to BlackBerry's business – and the robust, long-term process we spearheaded with the internal BlackBerry team that was able to withstand the serial shocks of the war in Ukraine, post-COVID disruptions, inflation, and a significant uncertainty regarding liquidity in the markets capped by prominent U.S. and global bank failures."

Elvir Causevic, co-Founder and Managing Director of Tech+IP added: "The uncorrelated nature of IP transactions explains our PE clients' recent interest in IP deals like never before. We believe there is a narrow window for large patent owners to smartly spin-off their legacy IP investments and redeploy that new capital into current technology acquisitions at historically attractive valuations, or into other high-ROI corporate initiatives."

The team at Tech+IP leading the firm's advisory role for BlackBerry also included Bojan Marijanovic, Adi Hrustanovic, Chuck Fish and numerous others. Sullivan & Cromwell served as legal counsel for BlackBerry, and Shearman Sterling for Tech+IP' in its first fairness opinion portion of the work.

About Us

Tech+IP Advisory, LLC is a boutique advisory firm specializing in advising company management, boards and other stakeholders on how to identify and realize value from their Tech+IP Assets. Headquartered in the Washington DC area with offices in Europe and Taipei, Tech+IP was founded by the former global co-heads of Tech+IP Advisory for leading independent investment bank Houlihan Lokey.

Contacts: Ed Fish: Ed@techip.cc and Elvir Causevic: Elvir@techip.cc

Tech+IP Advisory is a separate and distinct Company from Tech+IP Capital, LLC, a boutique investment bank focused on M&A and financing involving advanced technology companies. Broker dealer FINRA registrations for Tech+IP Capital, LLC principals are provided through GT Securities, Inc. Member FINRA / SIPC

View original content:https://www.prnewswire.com/news-releases/techip-announces-new-blackberry-patent-deal-to-sell-substantially-all-of-its-non-core-patents-and-applications-301777798.html

SOURCE Tech+IP Advisory, LLC

FAQ

What is the value of the BlackBerry patent sale transaction?

The patent sale transaction is valued at up to $900 million.

How many patents are involved in BlackBerry's recent sale?

The deal includes nearly 32,000 patents.

What core patents are excluded from the BlackBerry patent sale?

The sale excludes patents necessary for BlackBerry's core business operations.

What approvals are required for the BlackBerry patent deal?

The deal requires regulatory approvals from Canadian and U.S. authorities.

What are the potential risks associated with BlackBerry's patent deal?

Regulatory approval delays and market volatility are potential risks.