Rochester, N.Y. - With Bloomberg reporting Apple and Google are teaming up to buy Kodak's digital patents for more than $500 million, Kodak's chance of exiting bankruptcy greatly improves, according the George Conboy of Brighton Securities.
"It was far less than Kodak wanted or expected, but enough to enable Kodak to get the loan it needs to emerge from bankruptcy," Conboy said.
Still, Conboy is perplexed as to why Apple and Google would want the patent portfolio in the first place.
"Since they were able to do what they do without the patents, it was a little bit of a surprise that they finally shelled out a half-billion dollars for them," Conboy said. "In the end, our view is that Apple and Google felt it was a wise investment that it would keep them out of court should someone buy them in the future and attempt to sue."
Conboy says Kodak is not out of the woods, but gives the company an 80 percent chance of emerging from bankruptcy in 2013.
