Jan. 26 (Bloomberg) -- RealNetworks Inc., a maker of software for playing audio and video files, surged the most in more than a decade after the company sold patents to Intel Corp. for $120 million.
The shares jumped 35 percent to $9.89 at 4 p.m. in New York, the biggest gain since May 16, 2001. Seattle-based RealNetworks had lost 2 percent of its value this year before today.
RealNetworks, a company struggling to return to profitability after three years of declining sales, is signing over 190 patents and 170 patent applications worldwide to Intel. It will retain rights to continue using the intellectual property in current and future products, according to a statement from Intel.
Intel, the world’s largest chipmaker, is getting patents that cover media streaming, which lets users listen to music and watch programs over the Internet. The Santa Clara, California- based company plans to use RealNetworks’ technology to improve its products for laptops and smartphones.
Intel is bolstering its mobile technology as it pushes its chips into the smartphone market. Earlier this month, the chipmaker said Lenovo Group Ltd. and Motorola Mobility Holdings Inc. will start using its processors in handsets this year, a breakthrough in Intel’s decade-long campaign to win mobile-phone customers.
RealNetworks has reported a loss in its most recent three quarters. The company plans to release its latest results on Feb. 15.
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