This strategic acquisition considerably strengthens Dolby’s licensing businesses and places the company on a robust growth path for the future. The GE Licensing agreement happens in a context where General Electric is being restructured in three separate companies: GE Aerospace, GE Vernova (energy), and GE HealthCare. Dolby acquires the Licensing business, headquartered in Boston, MA from GE Aerospace.
As one of the most respected companies in the field of patent licensing and management, GE Licensing holds world-class patents and a team of 200 employees with licensing expertise, especially with respect to digital media and pioneering video codec technology. GE Licensing currently represents multiple consumer technology companies from Taiwan, South Korea and China, with IP in electronics, smart systems, materials, and advanced manufacturing. Overall, the transaction will include a portfolio of over 5,000 patents, including foundational patents in standard essential video compression. GE Aerospace will retain its portfolio of IP related to its core aerospace and defense technologies, as well as the trademark portfolio for the GE brand.
"GE Licensing is home to a number of essential innovations that power the modern world," explains Andy Sherman, Dolby Executive Vice President, Patent Licensing and General Counsel. "An important part of Dolby’s strategy is providing value to our customers, partners, and the industry through open standards and collaborative pool licensing. This acquisition gives us the opportunity to continue to promote and support innovation within our ecosystems."
This acquisition is an extension of Dolby's existing licensing businesses. GE Licensing’s portfolio of video codec technology, such as HEVC and VVC, complement, strengthen, and expand the scale of Dolby’s intellectual property portfolio. The GE patent portfolio also includes audio compression technologies, essential for efficient audio data transfer and playback. This includes a patent for audio-on-demand communication and telecommunication-related technologies.
"Dolby is a trusted leader and innovator with a long history in licensing technologies and patents through collaborative structures," says Robert Giglietti, GE Aerospace’s CEO of Corporate Holdings and Treasurer. "As GE Aerospace continues to sharpen its focus as a standalone company serving aerospace and defense customers, Dolby is the right partner for ensuring these innovative digital media technologies continue to serve businesses and consumers around the world."
The agreement to acquire GE Licensing, represents a $429 million all cash transaction, which Dolby expects to close by the end of fiscal year 2024, subject to regulatory approval.
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