Spansion Gets $70 Million In Samsung Patent Settlement

Spansion (SPSN) this afternoon announced that it will receive $70 million from Samsung to settle the patent litigation between the two companies. Spansion and Samsung will also cross license their patent portfolios. With Spansion in a Chapter 11 proceeding, the deal is subject to bankruptcy court approval.

The obvious question is whether Spansion is now likely to have some residual value for common holders when the chipmaker emerges from bankruptcy. Spansion didn’t directly answer that question, but it did say in a statement that the settlement strengthens its cash position “to help us emerge from the Chapter 11 process a stronger and more focused company.”

In late trading, Spansion shares have jumped 10 cents, or 70%, to 23 cents.