Ottawa-based patent licensing firm Mosaid Technologies is facing a takeover bid from rival Wi-Lan Inc. Mosaid released a statement this week asking shareholders to await further instructions from the company’s board of directors. A $480-million cash bid was taken directly to Mosaid shareholders after markets closed Wednesday night. The Mosaid board has rejected several similar bids in recent years to combine Canada’s two largest patent companies. Both companies generate most of their revenues through the licensing of technology rights to telecom and computer-chip manufacturers—transactions that can land billions of dollars for top-line patents. If successful, the bid would combine the two companies’ large holdings of technical patents, including more than 4,200 patents in the wireless, wireline, consumer electronics and semiconductor technologies, Wi-Lan said in a release issued Wednesday night. “We strongly believe that the complementary patent portfolios, diverse licensing programs, experienced teams and innovative research and development of WiLAN and MOSAID make this a compelling combination,” Wi-Lan chairman and CEO Jim Skippen said in the release. "It is my belief that to succeed in today's market, bigger is better," Skippen, a former Mosaid executive, said. Mosaid stocks climbed $7.85, roughly 25 per cent, to $39.40 the morning after Wi-Lan announced the bid. Wi-Lan shares took a small drop Thursday morning, falling roughly five per cent from $7.09 to $6.74 per share.