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Intel Corporation Message Board

  • patentsaddicted patentsaddicted Oct 23, 2012 5:06 AM Flag

    Interdigital is now a major takeover target for Apple,Samsung ( mentined this morning in HK ), Amazon & Microsoft

    The reasons behind the possible Bid before the year ends
    - Migration to 3G and 4G offers upgrade cycle opportunities.
    - New emphasis on partnerships or piecewise patent sales : On June 18, the company announced its first such deal, a sale of 1,700 patents to Intel for $375 million.
    - Resolution of licensing disputes to provide catalyst : Over the next 12 months, InterDigital should begin to resolve licensing disputes with Nokia,
    LG, Huawei, and ZTE. We believe InterDigital’s recent successful appeal with Nokia will be an important catalyst with other licensees.
    - Valuation: IDCC shares trade at over 50 times our 2012 EPS estimate, which does not include upside from potential agreements with Nokia, LG, ZTE, and
    Huawei (largely because of uncertainty in timing). Combined, these opportunities generate annual incremental EPS of up to $5 per year and current
    valuation reflects a conservative view of the prospects for resolutions with unlicensed vendors, especially in light of the company’s recent favorable appeal
    against Nokia .

    With more than 18,000 patents (following the pending sale of 1,700 patents to Intel), InterDigital is the third-largest holder of 3G patents and second-largest holder of essential 4G patents. The company therefore has a formidable and defensible position in the wireless world. According to TechIPm, the company holds an estimated 19% of all the essential patents for the LTE standard. Other top players in the LTE space include Qualcomm, Nokia, LG, and Samsung. According
    to TechIPm, by July 2010 roughly 81% of all 4G IPR was shared among these five players

    Sentiment: Strong Buy

34.92-0.18(-0.51%)Oct 26 4:00 PMEDT