seeking alpha " Google, Apple or Twitter Could Buy VRNG" posted.
Savvy Vringo Buys Insurance With Offering
Oct 5, 2012 9:00 PM
Today Vringo (VRNG) announced a direct sale of 10.3 million shares at $4.35 bringing in $45 million. This is on the heals of Google's (GOOG) loss on its motion for summary judgment "MSJ" in the pending patent infringement case Vringo has filed against them.We have written in the past of Vringo and recommended that Interdigital (IDCC) should investigate acquiring the company. Now that the MSJ has cloud on the patent case has cleared, VRNG is poised to profit from either a settlement or going the distance in proving the claims it has asserted.
In addition, we believe the strategic value for VRNG to other potential acquirers is now much higher as well. The value to a social media company of VRNG's IP is noteworthy. Twitter could easily afford to acquire VRNG, become public and make a compelling case against its arch rival Facebook (FB). In addition Apple (AAPL) may also consider buying VRNG and help with its IP litigation activities.
We recommend that with its new cash stockpile VRNG is a compelling buy. There are many other possible strategic acquirers for VRNG and now with its larger war chest of cash and additional patents purchased from Nokia earlier this year, VRNG has the time and resources to go for the "gold" and seeing the current litigation all the way through fruition.