Intel to Buy Patents and Next Generation Video Codec Software From RealNetworks
SEATTLE, Jan. 26, 2012 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK) today announced that it has signed an agreement to sell a significant number of its patents and its next generation video codec software to Intel Corporation for a purchase price of $120 million. Under terms of the sale, RealNetworks retains certain rights to continue to use the patents in current and future products.
"Selling these patents to Intel unlocks some of the substantial and unrealized value of RealNetworks assets," said Thomas Nielsen, RealNetworks President and CEO. "It represents an extraordinary opportunity for us to generate additional capital to boost investments in new businesses and markets while still protecting our existing business.
"RealNetworks is pleased Intel has agreed to acquire our next generation video codec software and team," said Nielsen. "Intel has a strong reputation as a technology innovator, and we believe they are well positioned to build on the development work and investment we've made in this area."
"As the technology industry evolves towards an experience-centric model, users are demanding more media and graphics capabilities in their computing devices. The acquisition of these foundational media patents, additional patents and video codec software expands Intel's diverse and extensive portfolio of intellectual property," said Renee James, Intel senior vice president and general manager of the Software and Services Group. "We believe this agreement enhances our ability to continue to offer richer experiences and innovative solutions to end users across a wide spectrum of devices, including through Ultrabook devices, smartphones and digital media."
In addition to the sale of the patents and next-generation video codec software, RealNetworks and Intel signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products.
"We look forward to working with Intel to support the development of the next-generation video codec software and to expanding our relationship into new products and markets," said Nielsen.
RealNetworks does not anticipate that the sale of the approximately 190 patents and 170 patent applications and next generation video codec software will have any material impact on its businesses. RealNetworks businesses include a wide variety of SaaS products and services provided to global carriers, RealPlayer, the Helix streaming media platform, GameHouse online and social games, SuperPass and other media products and services sold both directly to consumers and through partners.
RealNetworks creates innovative applications and services that make it easy for people to connect with and enjoy digital media. RealNetworks invented the streaming media category and continues to connect consumers with their digital media both directly and through partners, aiming to support every network, device, media type and social network. Find RealNetworks corporate information at www.realnetworks.com/about-us
RealNetworks, RealPlayer, Helix, SuperPass and GameHouse are registered trademarks of RealNetworks, Inc. All other trademarks, names of actual companies and products mentioned herein are the property of their respective owners.
Forward Looking Statements: This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to future investments in RealNetworks' businesses, the impacts of the sale transaction on RealNetworks' businesses, the continued development of RealNetworks' technology assets, future technology development activities with Intel, benefits from the strategic relationship with Intel, RealNetworks' indemnification obligations under the sale agreement. The press release also contains forward-looking statements relating to the completion of the sale transaction, which is subject to customary regulatory approval and the satisfaction of other customary conditions. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, and its quarterly reports on Form 10-Q and in other reports and documents filed by RealNetworks from time to time with the Securities and Exchange Commission. Actual results may differ materially from estimates under different assumptions or conditions. RealNetworks assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.
SOURCE RealNetworks, Inc.