Nortel was bankrupt...first bid 900M...final $4.5B...how could a bankrupt companies patents be worth more than IDCC's patents? 700M in cash on IDCC books...enough to pay all liabilities...so they have a strong balance sheet to sustain any downturn. IDCC traded near $60 before any announcement. IDCC could sell just a portion of the patents if they think the price is right for only a portion of the patent protfolio...that money could be paid to shareholders in a special dividend...we have heard $1B and $2B for parts not all of the patents...$4B for the entire company seems reasonable, but it could go higher as everyone needs to realize that IDCC is a solvent and strong company and not at the mercy of creditors and a bankruptcy judge.
Joe, I don't understand your choice of price range. The DealReporter low on September 26th was $44.01. Where does the $40 figure come from? If you want to totally disregard the possibility of a buyout, why stop at $40? On or about June 17, we were below $35.
It seems like your range should have a bottom target of $44 because that has been the low since InterDigital's announcement of July 19. Actually since the DR half-truths of September 26 the range has been $44 to $53 at the extremes and most of the time has been spent between $45.50 and $49.
All of these prices, of course, are the product of Market Makers' manipulation on low volume. None of them take into account ANY POSSIBILITY of the auction process which we all know is ongoing. So current price action is totally disconnected from the underlying smart phone and tablet market economics and from REALITY.