Samsung looks to bid for InterDigital’s patent portfolio
Samsung Electronics is considering a bid for Interdigital's patent
portfolio said two sources that were close to the matter. Samsung isn’t the
only company considering the patents; Apple and Google along with a number
of other potential buyers are also in the race, according to sources that
preferred to remain anonymous due to the private nature of the talks.
IDCC recently sold 1700 patents to Intel (INTC) for $375 million in cash.
As of the end of 6/30/12 Qtr, IDCC had current assets of $622 million with
liabilities excluding long term charges of approximately $200 million,
leaving a net cash position of $422 million on a relatively clean balance
sheet. Adding the $375 million from the sale to Intel, IDCC's cash before
taxes would total $797 million, which is more than half of its current
market cap of $1.4 billion. Considering just the cash and the 17,800
patents remaining in IDCC's portfolio, strategic purchasers such as Samsung
or Google should view IDCC as a bargain at its current low price.
It has been forecast that sales of smartphones are going to double by 2015,
according to Gartner Inc. Lee Seung Woo, an analyst based in Seoul, said
that there are a lot of important patents which belong to the InterDigital
portfolio and as the fight between Samsung and Apple heats up, Samsung
can’t afford Apple to get the assets. Thus for reducing the risk on itself,
Samsung will have to go ahead and bid, even if it costs them a huge
Wake up guys.... The deal should be announced in the coming days... !!