Digital imaging Patents belonging to camera maker Kodak have been valued at an amount five times more than its current market capitalisation.
Kodak’s digital imaging patents, which are just 10 percent of its entire patent portfolio, could be valued at almost $3 billion, five times more than its market cap, investment bank MDB Capital has claimed, according to a report on Bloomberg.
The company, which had a market cap of $30 billion at its peak, has had a steady decline in sales and profit due to a drop in popularity of photo films and camera as camera equipped Smartphones are slowly replacing digital cameras.
Kodak now has equity value of less than $600 million according to recent estimates. The company stands to get massive amount if it decides to sell its patents, thanks to a precedent set by recent patent acquisitions made by Apple, Google and Microsoft.
“Kodak is the lowest hanging fruit out there,” said Chris Marlett, chief executive officer at MDB Capital. He adds that the patents “could go for a huge number and nobody’s talking about it.”
Kodak, which has a $1.2 billion pension shortfall, had announced earlier that it is looking for buyers to acquire its digital imaging patents which are used in 85 percent of digital cameras and Smartphones.