RealNetworks Sells Patents to Intel for $120 Million

Posted 01/27/2012 at 9:34am | by Paul Lilly

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Intel announced it has signed an agreement with RealNetworks to purchase approximately 190 patents and 170 patent applications worldwide, along with next-generation video codec software, for a cool $120 million. The deal fleshes out Intel's patent portfolio for streaming media to portable devices as the Santa Clara chip maker gets ready to make a serious run at the smartphone and tablet markets.

"As part of the agreement, Intel will acquire RealNetworks’ foundational streaming media patents, expanding Intel’s diverse and extensive portfolio of intellectual property," Intel said. "The acquisition also 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."

RealNetworks will still be able to use the patents in current and upcoming products, which seems to have made out really well from the deal. According to The Wall Street Journal, news of the deal, which lead to RealNetworks and Intel co-developing software and other products, sent the company's stock up 29 percent to $9.51. At the time of this writing, it's trading at $9.71.