#Apple agreed to pay one-time up-front €1.7 billion to #Nokia for patents *UPDATED*
|In today’s financial results, Nokia mentioned that it had increased cash inflow thanks to an “up-front cash payment of approximately EUR 1.7 billion, part of which was recognized in the second quarter 2017 results.” When Nokia announced back in May that it settled all litigation with Apple, they also said that they will update its capital structure optimization program, as one reader pointed out, which means Apple agreed to pay a big one-time amount.
We contacted Nokia to confirm if the “up-front cash payment of €1.7 billion ($2 billion) (of which a part was recognized in Q2 results)” is from Apple, and Nokia’s PR team confirmed that and invited us to join the investor webcast at 2pm CEST here for more details.
We can conclude that Nokia scored a good deal with Apple. Apple agreed to pay up-front 2 billion dollars, of which some were paid in Q2. Apple will continue to pay royalties, along with the rest of this up-front payment. Details about the Nokia-Apple deal can be found here.
Update: Seeking Alpha has a full transcript of the webcast and the Apple part goes:
Second, we got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position. As said earlier, our plans is to provide more details on the intended use of cash in conjunction with our Q3 earnings.