Will GOOG make a $10.00+ offer over the weekend like the rumor coming from a few of the blogs today
For VRNG, a settlement is the best deal. A cash payout by GOOG for the infringement, and a licensing deal going forward so GOOG would have legal access to use the patented properties and have to pay VRNG for that right. That would empower VRNG to sue MSFT, TGT, and the others. A $10 buyout is low ball and the end of the road for VRNG.
If they dont settle we will be watching this movie again next year and maybe this will end up in a freaking mini-series too!!!!
Google is srewoogled and they know it. They have to settle and it is not going to be cheap. Vringo stockholders are not going to settle for small potatos here and that is the bottom line. Even if Google were to go to trial and win they would be looking at further litigation on other patents that Vringo holds.
Potential legal costs would be in the hundreds of millions alone just to fight these things.Then you add in the opportunity costs and the potential for loss of business, goodwill and their reputation would be harmed severely. "Google the crooks who steal patents and then beat up on the little guys"
All the Baptists will switch to Yahoo!!!! this is no doubt a big distraction to them also. What are they missing out on because of the energy and focus they have to put into this instead of something else that would be helping to grow the company and making them money.
Plus if they lose they will have to pay anyway.
Much better and easier for them to settle and at an equitable price. That way they can say they are paying for the use of those patents and save face. Their shareholders will understand as this is a cost of doing business. I myself do have some Google shares in my IRA.
If Vringo is smart about this and I have seen nothing to make me think otherwise, then they will put out a really big number for the whole sh'bang; the patents in question in addition to others which may have been used by Google and could result in future litigation along with royalties which might be due on those including the past and into the future.
This would give Google some closure on this law suit and insurance that they will not have to revisit this situation with Vringo again in 6 months.
I believe they call it bundling.
3-4 Billion dollars would do it I think.
If Google loses and Vringo gets treble damages it could be worth 5 Billion plus.
And then they have to worry about other lawsuits from them on other patents........
They could possibly get out for 3 million and have those extra future considerations as well.
In relative terms this could be a very good deal for them.
If they cultivate an even more hostile relationship with Vringo then it would make future settlements and negotiations even more difficult, lengthy and costly.
In a nutshell Vringo has them by the balls and they are not letting go until the check is signed!!!
Like they say; Sometimes it is better to just cut your losses.