ACACIA RESEARCHQ1 2020 Earnings Presentation

May 11, 2020

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SAFE HARBOR

T h i s p r e s e n t a t i o n ma y c o n t a i n f o r w a r d - l o o k i n g s t a t em e n t s w i t h i n t h e me a n i n go f t h e “ s a f e h a r b o r ” p r o v i s i o n s o f t h e P r i v a t e S e c u r i t i e s L i t i g a t i o n R e f o rm A c to f 1 9 9 5 . S u c h s t a t em e n t s a r e b a s e d u p o n o u r c u r r e n t e x p e c t a t i o n s a n d s p e a ko n l y a s o f t h e d a t e h e r e o f . O u r a c t u a l r e s u l t s m a y d i f f e r m a t e r i a l l y a n da d v e r s e l y f r om t h o s e e x p r e s s e d h e r e i n i n a n y f o r w a r d - l o o k i n g s t a t em e n t s a s ar e s u l t o f v a r i o u s f a c t o r s a n d u n c e r t a i n t i e s , i n c l u d i n g r e c e n t e c o n om i c f a c t o r si m p a c t i n g o u r p r o d u c t s a n d i n v e s tm e n t s ; c h a n g e s i n g l o b a l m a r k e t s ; r e c e n th e a l t h i s s u e s im p a c t i n g e v e r y a s p e c t o f g l o b a l b u s i n e s s ; r a p i d t e c h n o l o g i c a lc h a n g e ; c h a n g e s i n d ema n d f o r o u r f u t u r e p r o d u c t s ; l e g i s l a t i v e , r e g u l a t o r y a n dc omp e t i t i v e d e v e l o pme n t s i n o u r a r e a o f b u s i n e s s ; a n d g e n e r a l e c o n om i cc o n d i t i o n s . O u r A n n u a l R e p o r t o n F o rm 1 0 - K , r e c e n t a n d f o r t h c om i n g Q u a r t e r l yRe p o r t s o n F o rm 1 0 - Q , r e c e n t C u r r e n t R e p o r t s o n F o rm s 8 - K a n d 8 - K /A , a n do t h e r S E C f i l i n g s d i s c u s s s om e o f t h e im p o r t a n t r i s k f a c t o r s t h a t ma y a f f e c t o u rb u s i n e s s , r e s u l t s o f o p e r a t i o n s a n d f i n a n c i a l c o n d i t i o n . We u n d e r t a k e n oo b l i g a t i o n t o r e v i s e o r u p d a t e p u b l i c l y a n y f o r w a r d - l o o k i n g s t a t em e n t s f o r a n yr e a s o n .

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Q1 SUMMARY

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A d v a n c i n g A b s o l u t e R e t u r n S t r a t e g y• Focus on growing book value and leveraging our substantial NOLs and capital partnership with Starboard.

• Actively evaluating corporate development opportunities with Starboard

• Strategic Committee of the board is meeting regularly

• Recent market volatility has opened many opportunities that are being evaluated

• Restarted IP Assertion Engine

E n h a n c e d I P P o r t f o l i o w i t h T w o A c q u i s i t i o n s• Acquired assets offer an attractive blend of licensing and litigation opportunities to pursue

• Additions expected to begin generating licensing revenues in Q2 with significant contribution beginning in 2021

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A COMMON FRAMEWORK FOR UNIQUE INVESTMENT OPPORTUNITIES

V a l u a b l e A s s e t s + C o m p l e x E x t r a n e o u s I s s u e s = V a l u e D i s l o c a t i o n s

ValuationEngine

GovernanceInvesting

Trading

Capital Allocation

Capital Markets

& M&A

Acacia Skill Sets

Absolute Return Investment Platform

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IP INVESTMENT APPROACH & BUSINESS UPDATE

I P I N V E S T I N G S U M M A R Y

• Current IP team’s leadership has track record for generating positive returns in all environments

• Environment now healthier – less capital, litigation backdrop improving

• Leveraging IP brand equity to be an effective patent licensor

• Strategy incorporates soft licensing opportunities (more predictable, faster return of capital) with incremental exposure to higher return litigation opportunities

• Leverage revitalized efforts to drive increased awareness among patent owners

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H I S T O R I C A L P E R S P E C T I V E : 2 0 0 0 – 2 0 1 2A CLASSIC ASSET BUBBLE CREATED….

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Excess Capital Entered the Market

$6Bn+ in capital raised by IP investment management entities during 2000-2012

Patent sales between 2000 - 2010 were generally @ ~$150-200K/patent

Patent Portfolio Deal Sizes Rose (price / patent)

H I S T O R I C A L P E R S P E C T I V E : 2 0 1 2 – 2 0 1 3… BUT THEN IT BURST

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Changes in the regulatory and legal environment led to sharp reductions in patent valuations

• 2011 -- AIA passed

• 2012 -- Inter-Partes Review (IPR) process introduced (a new level of post grant review)

• 2014 -- Alice v. CLS Bank Supreme Court decision constrained patented subject matter

• 2015 – Leadership changes at the USPTO

P A T E N T P R I C E S H A V E B O T T O M E D , B U T S T I L L W E L L B E L O W P E A K

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P r i c e s f e l l f r o m $ 3 5 0 K / p a t e n t i n 2 0 1 2 t o $ 1 5 0 K / p a t e n t i n 2 0 1 7

R E G U L A T O R Y / L E G A L E N V I O R N M E N T H A S I M P R O V E D

1 0

F e w e r p a t e n t s a r e r e v i e w e d a t I P R f o r i n v a l i d a t i o n - o f t h o s e r e v i e w e d , a s m a l l e r p e r c e n t a g e a r e i n v a l i d a t e d

F e w e r p a t e n t s r e v i e w e d a t I P R f o r i n v a l i d a t i o n

O f t h o s e i n v a l i d a t i o n c l a i m s h a v e d e c l i n e d

Institution rate for each fiscal year is calculated by dividing petitions instituted by decisions on institution (i.e. petitions instituted plus petitions denied). The outcomes of decisions on institution responsive to requests for rehearing are excluded

87%

75%68% 67%

63% 60% 63%55%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

1,400

1,600

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Institution Rates(FY13 to FY20: Oct. 1, 2012 to Feb. 29, 2020

Instituted Denied

17%12%

23% 24%26%

-10%

10%

30%

0

2,000

4,000

6,000

8,000

10,000

12,000

2014 2015 2016 2017 2018

Determinations of Claims in Final Written Decisions

Not unpatentable Unpatentable

A C A C I A ' s I P A s s e t b a s e

• Core IP Team

• Highly skilled and experienced

• Very efficient and able to leverage for scale

• IP expertise can be leveraged to diligence other corporate opportunities

• Well recognized as an aggressive assertion entity

• Company is well capitalized

• Can move quickly on market opportunities

• Committed to remaining a well-capitalized counterparty

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2 0 2 0 P O R T F O L I O A C Q U I S T I O N S T O D A T E

• 3 Portfolios Acquired – Fusion IO, L3Harris, Excalibur

• Diversified balance of soft licensing, litigation-driven revenue

• Soft licensing expected to deliver attractive near-term returns over 6-18 months

• Litigation provides incremental and outsized returns over long-term

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FINANCIAL SUMMARY & UPDATE

ACCESS TO CAPITAL

A S O F M A R C H 3 1 , 2 0 2 0 ( I N $ M I L L I O N S )

U N R E S T R I C T E D C A S H , L I Q U I D S E C U R I T I E S 1 5 8

R E S T R I C T E D C A S H ( S T A R B O A R D P R E F E R R E D ) 3 5

N O T E S T O B E I S S U E D T O S T A R T B O A R D ( u p t o ) 3 6 5

N O T E S T O B E I S S U E D T O A C T G S H A R E H O L D E R S ( u p t o ) 1 0 0

T O T A L A V A I L A B L E C A P I T A L $ 6 5 8

1 4