: Blackberry selling non-core patents to Malikie as it terminates earlier deal with Catapult

BlackBerry Ltd. BBCA:BB stock is up 6.1% in premarket trades Tuesday after the mobile device maker said it agreed to sell about 32,000 non-core patents and patent applications to Malikie Innovations Ltd., a newly-formed subsidiary of Key Patent Innovations Ltd., for up to $900 million. Funding has been secured from a U.S.-based investment firm, which the company did not name. BlackBerry will receive $170 million in cash on closing and an additional $30 million in cash by no later than the third anniversary of closing, as well as annual cash royalties from the profits generated from the BlackBerry patents. The deal does not include 120 “monetizable non-core patent families relating to mobile devices” as well as all existing revenue generating agreements.  “BlackBerry will receive a license back to the patents being sold and the transaction will not impact customers’ use of any of BlackBerry’s products, solutions or services,” the company said. Blackberry terminated a deal with Catapult announced on Dec. 20 because the buyer was unable to secure financing.

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