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What: Shares of InterDigital
So what: InterDigital is selling approximately 1,700 patents and patent applications to Intel for $375 million in cash, covering patents related to wireless technologies like 3G, LTE, and 802.11. The deal shows that InterDigital's R&D is "defining technologies that are central to the world's major wireless systems and devices," according to InterDigital exec Scott McQuilkin.
Now what: At the same time, InterDigital announced that it was doubling its stock repurchase program to $200 million as the Intel transaction represents a big win for InterDigital's monetization strategy. The company said it is committed to its previously stated goal of generating $800 million in sustainable annual revenue in the next three to five years, and it can also use the cash from this deal to pursue further licensing efforts more aggressively while investing in future innovations.
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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel and InterDigital. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.