Nortel Networks Corporation has announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain others of its subsidiaries have entered into a stalking horse asset sale agreement with Google for the sale of all Nortel’s remaining patents and patent applications for a cash purchase price of $900 million.

The agreement includes the planned sale of approximately 6000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors, and other patent portfolios. The extensive patent portfolio touches nearly every aspect of telecommunications, and additional markets as well, like Internet search and social networking.

This agreement follows a confidential, multi-round bidding process involving several interested companies and consortia from around the world.

"We look forward to what we hope will be a robust auction, following the requisite court approvals, currently expected to be held in June 2011,” said George Riedel, chief strategy officer and president of business units, Nortel.

Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice. Following completion of the bidding process, final approval of the U.S. and Canadian courts will be required.

In addition to the processes and approvals outlined above, consummation of the transaction is subject to the satisfaction of regulatory and other customary conditions.

Nortel Networks
http://www.nortel.com/

Google
www.google.com

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