Erik Giles " POTENTIAL VALUE OF VRNG $100 A SHARE .//link
Seeking Alpha Potential Long Term Value Of Vringo Is $100 A Share By Erik Giles October 29, 2012
It's possible that a contingent offer is already agreed to by the parties behind the scenes to protect both parties from total loss. Something like, for example, $5 billion if no injunction is granted, $10 billion if the injunction is granted. This might explain why no buyout or settlement has been reached.
Considering the impact of the premature earnings release last week, which caused a $70 drop for Google and a rare halt to trading, I think such a merger makes economic sense for Google shareholders. It would save the potential $500 million in past damages, add more value associated with the patents Vringo purchases from Nokia, and also leave Google in a position to sue Microsoft and Yahoo for past infringement and use an injunction of their own to solidify and protect its 95% market share dominance in the rapidly growing mobile search market.
I never thought about it if this case goes to the jury and Google is found guilty for $500m and future royalties, that Google opens up the possibility of their customers being sued, injunction, etc…Knowing this now, Google has to settle or buy them out for a nice premium…