I have done a little thought provoking reading today on the news that Apple is planning to launch their own free streaming music service next year. This significantly impacted Pandora's stock price today. While Pandora's product is a true internet radio service and Apple's is not exactly the same, they will definitely be competitors. CNBC posted a pretty good discussion on this development and discussed the fact that Apple lags both Google and Facebook in their mobile capability. It is also interesting that much of Pandora's content is delivered over Apple's products. IMO. this provokes some very interesting possibilities. We know that Pandora has no IP, and some consider Pandora to be the biggest infringer on our IP. It is believed by our legal advisors that our IP is absolutely integral to Pandora's business model. (We are currently awaiting the long delayed Markman ruling in this matter). With AAPL and P now becoming competitors, our IP could be considered by both to be quite valuable. If either licensed or owned our IP. It would provide the licensee or owner a huge advantage in their competitive war. I guess one might say we could be either the sword or the shield, depending upon who attained the rights to our IP. We know how aggressive APPL can be toward competition, and Pandora's very survival may be at stake going forward. This could create a very interesting situation. I know some of us are quite skeptical about assigning any value to our IP at this time, but Hussey and IB still believe that the IP is a very valuable asset, and this developing situation between AAPL and P might just be an opportunity that we might look back on very positively. I know this post will earn some thumbs-down, but time will tell.
That is a good scenario. However, I don't see that happening until the Markman comes out. I think the IP is pretty much in limbo and we'll see what Hussey does with it. For all we know he could jettison it when he announces his plans in 2 weeks. Who knows. Or the judge could forget about the Markman for 3 years like McMahon. Anything is possible these days. That's why while that scenario sounds good, I do NOT think it is viable in the short term meaning one year which means HC will drive the stock price. If something happens with the IP, well then that's icing on the cake....but I wouldn't bet too much on it.
Hfb- Thumbs up from me. In fact, I this this scenario is VERY viable. It would seem that Augme's IP can be either a sword OR a shield for EITHER party, but particularly for Pandora. Without our IP they are truly screwed. At the current stock price the risk for anyone acquiring Augme has never been lower. My only hope is that the long-awaited Pandora Markman comes quickly, which should drive AUGT's PPS up substantially. That way, when we are acquired it will be at a higher price, which is what we long shareholders want.
That makes a lot of sense. Love the analogy of the shield or the sword.
* Settlement / license / sale of IP to Pandora
* Pandora uses Augme IP to block Apple
* Pandora regains market value and fortresses its business
* Augme receives much needed IP monetization
* Augme regains market value and premium
The more I really think about this, the more I wonder if this could end up being a big break for Augme. If I'm correct, it's Augme's IP that covers the process of P listeners rating music so they can be better targeted with other song recs. P's entire platform is built atop that function. Without it, Pandora is nothing more than like terrestrial radio with no dynamic or user based targeted content.
very provoking post HFB. it seems to me that Pandora would need all the help they can get against Apple. Pandora should license the technology through us, after a huge settlement of course. it would definitely help them in any upcoming #$%$ matches with Apple.. now I want that positive Pandora markman to come out ASAP... can Pandora ask to delay that ruling from being made public if Augme agreed?? if they were going into settlement talks or something like that.