RealNetworks shares stream higher after patent sale to Intel
RealNetworks stock surged 34.6 percent Thursday after it sold patents to Intel for $120 million.
RealNetworks stock surged the most in more than a decade after the Seattle company sold patents to Intel for $120 million.
The shares jumped $2.54, or 34.6 percent, to $9.89 Thursday, the biggest gain since May 16, 2001. Before Thursday, RealNetworks had lost 2 percent of its value so far this year.
RealNetworks — whose main business is developing software related to online audio and video — is struggling to return to profitability after three years of declining sales.
In the Intel deal, it is signing over 190 patents and 170 patent applications worldwide to the semiconductor giant. It will retain rights to continue using the intellectual property in current and future products, according to a statement from Intel.
The patents cover media streaming, which lets users listen to music and watch programs over the Internet. The Santa Clara, Calif.- based Intel plans to use RealNetworks' technology to improve its products for laptops and smartphones.
Intel is bolstering its mobile technology as it pushes its chips into the smartphone market. Earlier this month, the chip maker said Lenovo Group and Motorola Mobility will start using its processors in handsets this year, a breakthrough in Intel's decadelong campaign to win mobile-phone customers.
RealNetworks has reported a loss in its most recent three quarters. The company plans to release its latest results Feb. 15.