Case Study: Wang Laboratories, Inc.|
Ray Kurzweil was retained by the Creditors Committee in the Wang Laboratories, Inc. Chapter 11 filing as its technology expert to evaluate Wang's technology and to guide the committee on its best course of action.
Ray identified the Wang imaging and workflow software technologies and the Wang patent portfolio, consisting of over 240 U.S. patents plus foreign counterparts, as the technology foundation for the Wang reorganization plan. Ray was instrumental in fashioning a going-concern plan based on these software and patent assets. The plan provided creditors with approximately seventy-five cents to one dollar for each dollar of debt, far greater than any alternative courses of action that were considered.
Ray was subsequently asked to serve on the new Wang Board of Directors when the Company's reorganization plan was approved in September 1993, and was elected as Chairman of the Strategy and Technology Committee of the Board. Ray was also engaged as a consultant as Wang's principal advisor on its patent portfolio. Ray continues to hold these positions.
Ray was Wang's principal technology advisor in the negotiation of the Wang - Microsoft Strategic Alliance Agreement. This unique and historic agreement provides for incorporating Wang's imaging software in every copy of Windows95 (with Wang's logo in the splash screen), a $90 million investment in Wang preferred stock, strategic marketing agreements and other valuable provisions. Industry analysts evaluated the deal as worth over $150 million to Wang, and the increase in Wang's market value has been consistent with these estimates.
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