Pendrell Corporation announced that its subsidiary, Pendrell Technologies is to acquire 90.1% of privately-held ContentGuard Holdings, Inc., a leading inventor, developer and licensor of digital rights management (DRM) and related content distribution patents and technologies.
The Company will pay $90.1 million in cash to the current ContentGuard shareholders. ContentGuard and its management team will continue to be based in El Segundo, California. Time Warner – major shareholder in ContentGuard, will retain 9.9% and a seat on the board. Originally spun out of Xerox PARC in 2000, ContentGuard has been a pioneering inventor and developer of foundational DRM and content distribution technologies which enable the creation of new digital content business models and enterprise content security solutions.
“With approximately 50% of handsets worldwide licensed by ContentGuard, and substantial historical revenues, ContentGuard’s patent portfolio is well-proven. We believe that ContentGuard’s DRM technologies set the standard for protecting content in virtually every instance where content is transferred to a connected device — from mobile phones to tablets, set top boxes, e-readers, game consoles, DVD players, personal computer and televisions,” commented Ben Wolff, chief executive officer of Pendrell.
“We look forward to working with Pendrell as ContentGuard expands and accelerates the growth of its technical solutions and licensing programs to meet the growing DRM needs of consumers and businesses worldwide,” said Michael Del Nin, Time Warner, Inc. senior vice president for International and Corporate Strategy and ContentGuard board member. “The extensive telecom and media relationships and backgrounds of the Pendrell team, coupled with their deep IP experience, make them great colleagues for us going forward.”