Nobody knows the real value of IDCC patents except for the $4.5B paid to Norterl's inferior patents. But here is GOOG's dilemma. If GOOG puts a lowball offer, AAPL will obviously try to snatch IDCC with a very sweet offer. Remember, they only expected to get $1.5B on those Nortel patents and here comes AAPL and the others bidding 3 times more than that.
I don't really blame these analysts putting exorbitant price tag between $120-$300 per share for IDCC. Fact of the matter is "We are all CLUELESS".
There is nothing negative about a company with $500M in cash and no debt that is making money.
Not to mention they have about the best margins of any business.
If IDCC does not accept an offer they will be worth well over $300/share within 3 years.
Analyst are like pimps they just wh-re companies to make money for their firms!
iDCC is nothing but a clearing house for mostly outdated patents and sooner than later they are going BK like Nortel.
If GOOG really wants to buy them they can wait and get them very cheap in the BK court.
Your statement was weird. APPL did buy NT patents from BK cout, and paid $4.5B. Why do you think GOOG could pay less even if IDCC went BK?
Last year a report said ISLN was seeking a buyer. AT that time ISLN did not even confirm it. Within one month, they were bought. Unlike this time, IDCC already declared their purpose.
very true. Even if you know that the value should be $5 or $10 billion, at the end of the day the value is only what a buyer is willing to pay.
since there wasn't any comps before the $4.5b deal no one really had the market value until now. the deal recently gives a baseline for future deals and their valuation.
Very well stated. We are clueless what the final price will be, but we do have a baseline and fairly strong evidence that IDCC is worth more than Nortel as per several financial news articles and blogs from groups like seeking Alpha.
Now there will be people laughing at groups like seeking alpha, Minnionville, and MF, but we all know they are way ahead of your average message board hack.
Goog's bid on NT patents was below $1B. This makes me think that Goog was saving funds to put a higher bid on IDCC (maybe $2B). But since NT was sold for $4.5B, Goog is now scrambling to make a higher bid on IDCC.
Remember, Goog will not only compete with Aapl, Goog wants to be ahead. And Goog knows how to get there which is why they have approached IDCC. This is an all or nothing bid for Goog coz they know Aapl also wants to stay ahead of the others.