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InterDigital, Inc. Message Board

  • boomandgloom boomandgloom Oct 31, 2011 4:38 PM Flag

    Delayed because Strategics are not bidding for IDCC...?

    We are delayed because like MOSAID, IDCC has only stirred intest from private equity buyers. PE simply buy cash flow...

    Cash flow will be dependent on CAFC decision.

    So delay on sale, is due to the delay at the CAFC.

    A positive result and we sell for a healthy multiple (we BOOM), a negative one, and we are simply doomed to GLOOM. This trade will be either a $75+ stock or a $25 stock. There will not be a grey area.

    There is no way PE can justify a $4b price tag, which is big for PE, with HUGE uncertainty overhang from that decision.

    A strategic buyer could have taken the risk if IDCC patents had blocking power, but as IDCC patents don't have much strategic blocking power and are encumbered, the strategics passed on this deal.

    Needless to say, this is just my opinion, and I know that the 'I'm going to win the lottery longs' will not like to hear this.

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    • boom and Gloom you must be getting paid a lot to bash this stock on several boards.Write private messages to disuade investment,etc.You'll be caught

    • boomandgloom, think outside the box dude, say Apple does buy IDCC, you don't think they are capable of engineering patents that DO HAVE STRATEGIC BLOCKING POWER? Thats what I thought. It would been way too hard for a company like Apple or Google to start up a R&D division like IDCC or QCOM organically, thus which is why they have been BUYING.

      I highly doubt IDCC engineers are incapable of engineering/developing patents that would benefit companies like Apple and Google more, but because it would be hard to have a business model that is based around designing strategic "blocking" patents, they have a business model that designs them....BOOM...GO HOME...

      • 3 Replies to dc1081
      • Again,
        IDCC patents tend to be FRAND related,

        They are EMCUMBERD, say 50% of 3G is licensed...
        so GOOG Cannot use IDCC 3G patents to clobber Apple which has a multi year license...and then others too etc.

        Do you understand these basic key concepts about the investment you hold in IDCC?
        Don't worry, private acuity will buy us, and Barclays downgrade is designed to help Barclays will make far more money doing the debt side of the PE buyout than the M&A

        All the little pieces of the puzzle begin to fit..we just won't see $4.5 billion valuation. That, I can assure you. I am happy with $75

      • FYI, Apple has over a 1000 engineers developing chips among other things, per a quote from Steve Jobs, I'm sure they can generate there own patents but I do see they like to grow from within and the IDCC engineers would be a great fit.

      • boomgloom,

        in a hurry, let me re-phrase my last sentence....IDCC has a business model that "licenses" their technology out...ok now go home...

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