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InterDigital, Inc. Message Board

  • gooferb gooferb Sep 15, 2011 12:51 PM Flag

    If IDCC makes 60 mil

    a quarter roughly 250 mil a year in rev. In 4 years thats about 1 bil this dosen,t count expences litigation etc they have 7500000 cash . It would take 12 years to make 4 bil in rev if things stay about the same why would INTC pay 5 to 8 bil for that? tech changes new ideas develop patents will be different and challanged.Seems better to pay the royalities and develop something new with the 8 bil.I have no position on idcc any comments ?

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    • Well they did pay 7.7 billion for mcafee, which had net income of approx 400 million. So payback based on your reasoning would be what? About
      20 years.

    • Intel or any other company looking at buying Interdigital will do so for the defensive value of the patents for cross-licensing purposes. Additionally, they will get a ready made portfolio that is current and also positioned for future developments in wireless.

      It has been stated that some of the new entrants into the wireless sector could realize billions of dollars in savings while still generating some income from licensing. More than enough of a reason to pay $5-7 billion for Interdigital.



    • The problem with that narrow line of thinking is you are not factoring in growth.

      IDCC expects to sign 100% of the market for 3G and 4G and the market is expected to grow 100% over the next 5 years making it a double double or close to $1B in revenues with no additional costs.

      Then factor in new tech they are developing plus growth in M2M and you could probably add another $.5Byr in revenues with no increase in costs.

      The New tech; Network of Networks, Video compression, Their motto bigger, fatter, and more pipes.

      Then 5G will not be far down the road.

      At $1B in revenue they will be earning at least $16/share before taxes.

      Bottom line I don't really care if IDCC gets sold or not. It will be a triple digit stock within 3 years anyway.

      Wireless is hot and will continue to be for at least 5-10 years.

      Interdigital won't stop inventing.

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