Unwired Planet (UPIP) Stock Surges on Lenovo Patent Deal
Shares of Unwired Planet Inc. (UPIP) were trading up +1.08 or +83.08 percent to $2.38 per share in pre-market trading on Friday, after announcing that Lenovo LNVGY would be buying a portfolio of patents from the company for $100 million. The deal includes a term-based license to Unwired Planetâ s patent portfolio. Unwired Planet stock closed at $1.30 per share, down -0.08 or -5.80 percent in Thursdayâ s regular trading session.
Reno, Nevada based Unwired Planet, formerly known as Openwave Systems Ltd. was originally founded as Libris Inc., by Alain Rossman in 1996 and is considered the inventor of the mobile Internet. In 2001 the company changed its name to Openwave after merging with Software.com and began providing mobile operator customers with a software infrastructure to carry mobile email and other messaging services. Chinese based Lenovo, is the worldâ s largest maker of PCs after buying IBMâ s (IBM
) personal computing division. The company, which technology company is focused on PCs and mobile devices including servers, workstations, tablets, smartphones and a host of mobile internet devices. The company has offices in Yamato, Japan, Shanghai and Shenzhen, China and Raleigh, North Carolina. Due to litigation between Apple (AAPL
) and Samsung, many companies in the mobile industry have been increasing their patent portfolios to avoid lawsuits. Lenovo recently bought Motorola from Google for $2.9 billion, taking a big position in the mobile industry. The deal for Unwired Planetâ s patents will have Lenovo purchase 21 patent families from Unwired for $100 million in cash. Included in the deal are patents for 3G and LTE mobile technology, along with other important patents. In addition, the terms of the agreement will have Lenovo license Unwired Planetâ s portfolio of intellectual property for several years. The deal will cover standard essential, implementation and layer technology for applications on mobile devices. Philip Vachon, Chairman of the Board of Directors and chief of its Intellectual Property Committee for Unwired Planet said, â
Published on Mar 21, 2014
By Jay Hawk