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InterDigital, Inc. Message Board

  • xraythrives xraythrives Nov 4, 2011 11:28 PM Flag

    You could be an M&A genius and still....

    You have no better idea of what is going on in those rooms than anyone else.

    And may I suggest, now that we are well into our 4 month, the suggestion that "there are no bidders and nobody is interested" borders on idiotic.

    128 per share is what you will see. (6.4B)

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    • "Collections of patents" are very similar to "collections of fine art."

      Lind would never get how a painting from Van Gogh sold for 200m.

    • lind - how come you haven't replied to my response to your post on this subject?

      << Bidding wars, by their very emotional nature, are a rapid phenomena. If it takes too much time, the bidders come to their senses and walk away. Had there ever been a bidding war for IDCC (in fact the opposite is true), it would be over by now. To me this is nothing more than common sense. >>

      I believe you have to qualify this statement. Yes, bidding wars are emotional and rapid, but only once they begin. However, something can be offered for sale and sit for a long time before the "bidding war" starts. The most common example is the eBay auction which runs for a week but all the bidding occurs in the last minute.

      The participants aren't necessarily in a hurry - they might spend time checking out the merchandise, they might spend time checking out the other bidders and trying to determine their level of interest, trying to form bidding groups, etc.

      Only towards the end does the action heat up and it is difficult to know when this point will be reached. This is a sale of a complex and valuable collection of patents, which can be sold in whole or in parts, to individual companies or consortia. Their are complex legal issues to consider, including potential anti-trust concerns. It's not going to happen quickly, especially if consortia are being formed. It is the job of the investment bankers to find and guide the parties to the point where the real bidding can begin.

    • downstock - how come you haven't replied to my response to your post>

      << Here's the kicker..as to why I don't see a buyout over $100 besides the obvious fact that those kind of premiums just don't happen, >>

      I'm not arguing that a buyout over $100 will happen BUT I don't think you can just dismiss this possibility. Did you think Nortel would go for what it did? Remember Google opening $900M bid? My initial thought was that this was unbelievably lucky for the creditors of Nortel. And then it goes for $4.5B - did you expect that? And the same for Motorola - did you have any idea that it would be bought out for anything close to that price? So, while such premiums are the exception and not the norm, they do happen - especially when valuable patent collections are involved.

      << If IDCC had received any large bid over $100 do you think they would not have had a deal done already. If they were doing what was in the best interest of shareholders they would have agreed to such a buyout offer. This time lag suggest that no such offer has been forthcoming, and when you factor in negative leaks, and the stock price action it just supports this. >>

      Nobody is going to come in and make a high bid early in the process. The action in such situations typically occurs at the end of the process. For example, how many times have you seen an item on eBay sit and sit at low prices and then explode the last few minutes. When did the real bidding in Nortel occur - at the end! The investment bankers job is to line up at least two interested parties (individual companies or consortia) and then match them against each other. This takes time and no one is willing to show their hand until the end-game is approaching.

      << Now the good news..well they haven't called off the process yet. Some will say they are committed to selling, but I suggest that if they didn't have interest the process would be over. I think this delay suggests consortia are coming together to bid and trying to achieve a price IDCC can live with. >>

      While the consortia must obviously achieve a price that IDCC can live with, their real challenge is to outbid the other interested parties. This is where the investment bankers earn their keep. They become like the guys at the Barrett-Jackson car auctions - going back and forth between bidders - telling how great the car is - how much they want it - don't let that other guy steal it from you. If they do their job properly, prices can fly fast and furious.

    • << Bidding wars, by their very emotional nature, are a rapid phenomena. If it takes too much time, the bidders come to their senses and walk away. Had there ever been a bidding war for IDCC (in fact the opposite is true), it would be over by now. To me this is nothing more than common sense. >>

      I believe you have to qualify this statement. Yes, bidding wars are emotional and rapid, but only once they begin. However, something can be offered for sale and sit for a long time before the "bidding war" starts. The most common example is the eBay auction which runs for a week but all the bidding occurs in the last minute.

      The participants aren't necessarily in a hurry - they might spend time checking out the merchandise, they might spend time checking out the other bidders and trying to determine their level of interest, trying to form bidding groups, etc.

      Only towards the end does the action heat up and it is difficult to know when this point will be reached. This is a sale of a complex and valuable collection of patents, which can be sold in whole or in parts, to individual companies or consortia. Their are complex legal issues to consider, including potential anti-trust concerns. It's not going to happen quickly, especially if consortia are being formed. It is the job of the investment bankers to find and guide the parties to the point where the real bidding can begin.

    • I'll move on as soon as this matter of strategic alternatives is resolved, but not a momeent sooner. So, you might as well get used to me or move on yourself.

    • Oh just so you know. Bidding wars have nothing to do with emotion or ego. They are far more likely a calculated business decision.

      ONCE AGAIN you make assertions which have ZERO basis in reality.

    • There is nothing you have presented which would demonstrate this as fact. You have repeatedly attempted to use flyonthewall as fact to support your assertions thus rendering anything you say useless. Sorry. You have already done everything here you are capable of, you might as well move on.

    • Gee Ron, that was a brilliant post. You must have graduated from Creighton (never heard of it) University at the top of your class.

    • EVERYBODY in my business subscribes to DealReporter, and unlike you denial dimwits, we give great credence to the quality of DelReporter's sources.

    • There is NO publicly available information unless you want to promote flyonthewall as being legitimate. And nobody "really" in your business would. End of story.

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