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O.K. THX! but let me add whatever price APPL or anyother company gets IDCC for is a good deal in this economy.
I think if it is APPL they got a good deal instead of 10B they paid 7.2B. Also 1 of the 2 Evercore or Barclays is or was the negotiator. The Board receives the offers, ask questions, directs the negotiator to push, etc. etc., However I doubt that they would have engaged directly in the negotiations as that is what IDCC paid Evercore or Barclays to do. All JMHO.
Many have no preference but I hope it is Apple and the clean the clock from all past infringers.
Well we know they met. I speculate if a no go we should know by tomorrow or deal is still hot! Either way I want this to be over.
I wonder what else was discussed?eom
I know but the naysayers will always point to the negative and just based on a rough order of magnitude using the low end comparison for LTE vs Nortel and MMI I think supports a figure much higher then the current price.IMHO
There are a lot of people trying to minimize what IDCC can sell for based on current price. I say based on the following analysis by Jefferies just for LTER IDCC has enough other stuff like 3G IPR, Other non essential LTE IPR, Engineers to bring patents to life, and cash on hand to at least split the baby down the middle Nortel 4.5B------IDCC 8.5B------MMI 12.5B.
Here’s what he came up with:
The Nortel portfolio, he estimates, includes 4% of the “essential LTE patents,” with a value of $1.35 billion.
LG, he says, has 23% of the key patents, worth $7.9 billion.
Qualcomm, 21%, $7.3 billion.
Motorola Mobility, 9%, $3.3 billion.
Interdigital, 9%, $3.3 billion.
Nokia, 9%, $3.1 billion.
Samsung 9%, $3.1 billion.
ZTE 6%, $2.1 billion.
Ericsson 2%, $600 million.
Research In Motion 1%, $400 million.
Huawei 1%, $200 million.
Freescale, 1%, $200 million.
NEC, 1%, $200 million.
If that's the game to reach top dollar so be it but IMHO non of the big boys want to carry the weight of the BOD and Executive management. Maybe hand pick some of the talent. The big boys from the US company's have more than enough talented board members and execs to manage the engineers and patents of IDCC.
I disagree with the statement no specific dollar figure unless you are suggesting something short of a sale. In regards to my post the key take away of what I was expressing is that I believe the process will not be drawn out much longer. To many negative variables come into play stringing the process out too long, primarily weakening revenues. During this period licensees are not being signed or renewed and the process to get licensees under contract has proven to be a long process for IDCC. Other variables mentioned by other posters the employees don't like uncertainty and will begin to look for security elsewhere if left in limbo too long. Market forces can effect deal. Countless other reasons that I could notate all day that gives pause to letting the possibility of a deal linger too long. As well there are a few positive variables that would make delay worth while but IMHO an incredible amount of negatives that say otherwise.
Yes if the reports by reuters and bloomberg are true and if IDCC is taking the same path as Nortel.eom
The bidding between rounds during the Nortel auction did not last but a few hours and in the later rounds the participants would break for a day at most. If the presumption is IDCC will be handled in the same manner as Nortel the bidding will not take more than a week.
I don't know how long you think you have to get back in but by the end of the week first thing next Monday the door will be shut no matter how much you continue to pontificate. tick tock tick tock! All JMHO.
If we are to believe last week was the week interested party's in the IDCC auction had to show formal interest we can also assume that if the sale is not called off this week the race is on. Once bidding has started things will be fast and furious.
If you read the SEC report it highlights the reasons GOOG bought MMI. One reason is GOOg did not want one of their partners settling with Appl and Msft. 2 they did not want to run the risk of MMI defecting to a new platform. 3 they did not want MMI trying to leverage patents to and create a disadvantage to the other android manufacturers. MMI used GOOG desparation to extract a offer.
No doubt Houston even though I am partial to my hometown Dallas.
Before I caught up to your post I read the Mpartners report and pull the same paragraph out and posted. Ironic.
Below is all that needs to be said.
IDCC’s portfolio is considered by experts to be the highest quality available portfolio, is closely related to Nortel’s, and is considered to be stronger and deeper than Nortel’s. It is also proven to be commercial. Google still needs a weapon to defend margins, and now that it owns a manufacturer, there may be more urgency for patent protection than prior to its proposed acquisition of Motorola.
Does anyone have a copy of the proxy circular that RS mentioned in his tweet?
esthinkRon Shuttleworth
$MMI proxy circular: IP comps used - $ARM, $QCOM, $IDCC - nice company for $IDCC
1.Will Google Gunning for the Right Patents vs ...
6 hours ago
The search engine responded by reportedly bidding on the patents of InterDigital, another significant wireless patent holder. InterDigital possesses roughly ...
www.octavecomm.com
It is not about over estimating. Read the story on Mot. The sale had very little to do with GooG understanding how weak Mot patents really are. GOOG just ran scared and made a deal in secrecy after losing the Nortel auction.
I would presume it was probably near current price.eom
The following from the GOOG Mot deal. I believe IDCC received such an off the table offer such as Mot and that is what lead them to formally announce retaining Evecore and Barclays. Also looking at the timeline it doesn't take long for a company to access the patents are maybe it does since it kinda looks like GOOG got hosed and really didn't know what they bought in terms of patents. One thing that I think is evident from the accounting of the Mot deal is the purchase of IDCC at a fair and reasonable rate based on the Mot deal might be very shocking if a deal goes through. It seems that the Mot deal was primarily based on the suppose strength of the patents but in retrospect the patents are numerous but not all that valuable.
On August 1, 2011, Google sent a letter to the Motorola Mobility Board of Directors proposing an acquisition of Motorola Mobility by Google for $30.00 in cash per share of Motorola Mobility common stock....On the same day, Motorola Mobility engaged Qatalyst Partners and Centerview as its financial advisors.
How Google Got Gamed In Its Motorola Deal
Motorola rejected two Google bids and managed to drive the final acquisition price up by about $3 billion -- even though there were no other bidders.
Key players in the deal included Motorola shareholder Carl Icahn, who suggested that Motorola shop its patents around, and Frank Quattrone, whose Qatalyst partners advised Motorola in the deal.
The full story came out today in an SEC filing from Motorola, and was pointed out by Dennis Berman of the Wall Street Journal.
Here's how it went down.
Android head Andy Rubin first approached Motorola in early July after Google lost out on the bid for a bunch of mobile patents owned by Nortel.
Motorola's Sanjay Jha let Google know it wasn't interested in selling the patents alone -- Google would have to buy the whole company.
The negotiations continued in earnest, with Motorola rejecting two Google bids -- a preliminary bid around $30 and a formal one at $37 per share -- before finally agreeing to the final price of $40 per share.
Throughout the process, Google showed how nervous it was, insisting that Motorola move quickly and keep the talks confidential. This gave Motorola the leverage to drive a harder bargain.
The whole story suggests that Google's original claim -- that this deal was mostly about patents -- was true, even though they've backtracked a bit since then.
More to the point, Google knew Android was in deep trouble if another company like Microsoft or Apple got a hold of these Motorola patents. Microsoft apparently was interested in striking a patent deal with Motorola, but talks stalled because Motorola wanted a full buyout.
Here's the text from the SEC filing, edited and with interesting bits boldfaced:
In early July 2011, Andrew Rubin, Senior Vice President of Mobile at Google, contacted Dr. Jha, Chairman and Chief Executive Officer of Motorola Mobility, to request a meeting to discuss the purchase by some of Google’s competitors of the patent portfolio of Nortel Networks Corporation and its subsidiaries (which we refer to in this proxy statement as “Nortel”) in an auction conducted by Nortel in June 2011, and the possible impact of and potential responses to the purchase.
After this initial contact, at meetings throughout early to mid-July 2011, senior management of Motorola Mobility and Google (Dr. Jha; Scott Offer, Senior Vice President and General Counsel of Motorola Mobility; Larry Page, Chief Executive Officer of Google; Nikesh Arora, Senior Vice President and Chief Business Officer of Google; Mr. Rubin; and Kent Walker, Senior Vice President and General Counsel of Google) discussed the strategic direction of Motorola Mobility’s Mobile Devices and Home product businesses and the opportunities and challenges faced by those businesses.
The parties also discussed the impact of the Nortel auction, intellectual property litigation and the potential impact of such litigation on the Android ecosystem, Motorola Mobility’s patent portfolio and potential strategic options relating to the Motorola Mobility patent portfolio and Motorola Mobility, including the potential sale of Motorola Mobility to Google.
At a July 6, 2011 meeting that occurred during this period, Dr. Jha and Mr. Arora discussed the protection of the Android ecosystem and, in the context of this discussion, Dr. Jha indicated to Mr. Arora that it could be problematic for Motorola Mobility to continue as a stand-alone entity if it sold a large portion of its patent portfolio.
...
Subsequently, on July 20 and July 21, 2011, Carl Icahn (who, together with his affiliates, was then the beneficial owner of approximately 11% of the then-outstanding Motorola Mobility common stock) and Daniel A. Ninivaggi, a director of Motorola Mobility designated by Mr. Icahn pursuant to that certain letter agreement, dated November 30, 2010, among Motorola Mobility, Mr. Icahn and certain of his affiliates, contacted Dr. Jha to express their view that Motorola Mobility should explore alternatives for the Motorola Mobility patent portfolio.
...
On July 28, 2011, Dr. Jha, Mr. Arora and David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer of Google, met (with Mr. Drummond participating by phone) to discuss Google’s interest in Motorola Mobility, including its mobile devices and home businesses, the significant economic terms of a potential acquisition of Motorola Mobility by Google on a preliminary basis and a process relating to the negotiation of the terms of a potential acquisition that would be both confidential and expedited. The Google representatives indicated that they were preliminarily considering a per share purchase price range in the high $20s or low $30s.
On August 1, 2011, Google sent a letter to the Motorola Mobility Board of Directors proposing an acquisition of Motorola Mobility by Google for $30.00 in cash per share of Motorola Mobility common stock....On the same day, Motorola Mobility engaged Qatalyst Partners and Centerview as its financial advisors.
On August 2, 2011, the Motorola Mobility Board of Directors met telephonically, with representatives of Qatalyst Partners and Wachtell Lipton, to discuss Google’s August 1 letter. In light of the fact that management and Motorola Mobility’s financial advisors were still in the process of evaluating Google’s proposal, as well as other strategic alternatives that could hypothetically be pursued by Motorola Mobility, including the prospect of settling some or all of the intellectual property litigation, the Motorola Mobility Board of Directors made a decision to defer a definitive response to Google and instructed Qatalyst Partners to convey that decision to Google.
...
From August 2 through August 5, 2011, Dr. Jha and representatives of Qatalyst Partners engaged in various conversations with Mr. Drummond and Mr. Arora concerning Google’s proposal during which Mr. Drummond indicated that Google was willing to improve the terms of its proposal but reiterated that Google’s proposal must be kept confidential and that a response must be received quickly.
On August 5, 2011, the Motorola Mobility Board of Directors met telephonically, including representatives of its financial and legal advisors, to discuss a response to Google. After consideration of a number of factors, including the then current status of the intellectual property litigation and the prospects of settling some or all of the intellectual property litigation, Google’s willingness to negotiate improved terms and concerns regarding the risks of an unauthorized public disclosure of the Google proposal, the Motorola Mobility Board of Directors instructed Qatalyst Partners and management to reject Google’s proposed $30.00 per share purchase price and determine whether Google would increase its proposed purchase price.
After the meeting, a representative from Qatalyst Partners contacted Mr. Drummond to reject the $30.00 per share offer and suggested that Google increase its proposed price to $43.50 per share.
....
On August 9, 2011, Mr. Arora telephoned Dr. Jha to increase Google’s proposed purchase price to $37.00 per share.
Dr. Jha responded to Mr. Arora that he would be prepared to recommend that the Motorola Mobility Board of Directors consider accepting a proposed price of $40.50 or higher.
...on August 9, 2011, Google sent a letter to Dr. Jha increasing its proposed purchase price to $40.00 per share. The letter proposed that the parties immediately commence due diligence relating to the proposed merger and negotiation of a definitive merger agreement and be in a position to announce the execution of the merger agreement by August 14, 2011. The letter concluded by requesting a response by the close of business on August 10, 2011.
...
At the meeting, the Board also considered, with advice from Motorola Mobility’s advisors, whether to solicit proposals from other potential buyers. Following this discussion, and taking into account advice from Motorola Mobility’s advisors, the Board determined, for the reasons set forth below under “—Reasons for the Merger; Recommendation of the Motorola Mobility Board of Directors—Value Presented and Deal Terms”, that it was preferable to negotiate on a confidential basis with a single potential acquiror, rather than to conduct a private or public “auction” of Motorola Mobility.
Google raised Motorola bid by $3B to get deal done
Documents reveal Motorola Mobility convinced Google to raise takeover bid by $3 billion
On Tuesday September 13, 2011, 9:22 pm
SAN FRANCISCO (AP) -- Google wanted to buy Motorola Mobility so badly that it threw in an extra $3 billion to get its takeover offer accepted last month.
That tidbit emerged Tuesday in regulatory documents that include details about the negotiations that culminated in cell phone and tablet maker Motorola Mobility Holdings Inc. agreeing to be sold to Google Inc. for $12.5 billion, or $40 per share.
After several weeks of confidential discussions, Google initially offered $30 per share in an Aug. 1 letter to Motorola's board. At the time, Motorola's stock was hovering around $22.
Motorola rejected the first bid and asked for $43.50 per share on the advice of Silicon Valley investment banker Frank Quattrone. Google then suggested a price of $37 per share before finally agreeing to pay $40 per share.
Rumors are not what longs need.eom
Romy rom seems to think so and a few longs are taking the bait.eom
That was my attempt at humor. I was just trying to point out that the shares where bought with purpose and many lost shares unbeknownst to them because of the ferocity the MMs used to drive the stock down and up in a blink of an eye.
It doesn't matter how it was done it is the why I am postulating. It ain't gospel take it or leave it. The stock went from 64-65 range to 61 in a matter of seconds back to the days trading range the end result 700K. Let me add,, it could have been someone put in a sell for 700K at market order and got taking to the cleaners.
God Bless and have a good night.eom
What has been conspired in darkness will come to the light are something to that effect.
The seller was many of those stops that got took out from 61 all the way up plus the shares the MMs had been gathering on the bid side to complete the sell, thus the blip in trading without the needle on the bid and ask comprehending the 700K in the flash of eye. Come on man you have been here long enough to see the playbook. Don't keep sanging that same song the seller had his on information.
Post below from IV. I add the MMs and their computer toys found religion only because they have been to the mountain top and peaked over and ran back dow and told the commoners it is desert on the otherside so leave your boat tickets with us and turnaround. Hehehehe! Quick their gone let's run back and sell all these new found boat tickets for double to those royal blue bloods with plenty of dough at the top waiting to crossover to the promise land.
Msg 56842 of 56842 at 9/10/2011 5:37:02 PM by
berkstump2
TA: Multiple choice: " Light My Fire" or "Hit Me With Your Best Shot"
The frist time I saw it, I ended up laughing so hard I had tears in my eyes.
In the movie, entitled "Triplets of Belleville", three old ladies ( once a sister singing act in
Paris) now live in a dilapated apartment house and the frig is empty and they are hungry.
One of them, picks up a pot, an umbrella and an old German stule hand grenade know as
"potato masher" and leaves the apartment building on a quest.
tottering down to the edge of a pond, shoe puts the umbrella up, unpins the potatao masher and
tosses it into the pond and sticks the pot out from underneath the umbrella's canopy and waits........
the explosion that follows , beside drenching everything around her with water , fills her pot
to overflowing with frogs. She then retires back to her sisters and they dine on frog food. all prepared
according to recipes that would gag an average American.
Find a 15 minute candle chart for this past week and take a look at the candle for the 3:30 to 3:45 period.
It has a small "body" and an extraodincarily long tail (known as a shadow) both on the bottom side and the
top side. Ordianaryily, this "spinning top" is inferred to mean an unsure or indecisive market.
This time around though, it's just plain hilarious....... and highly indicative of just how potentially high charged
the IDCC market is these days.
Remember earlier this year when if IDCC traded between 1m and 1.3M chares in a day, we knew that IDCC was having a big Day ?
Get this.
These are the stats of that 3:30 to 3:45 15 min candle for 9/9-
Open- 64.21
High- 66.99
Low- 61.37
Close- 64,30
Volume- 1,275,207
Cheezy Peezy, Holy Cow, and Gobbla Gobbla Humunga.
Talk abut fishing with high explosives!
Back in the days before the NYSE went bisexual, a candle with either an extremely long upside tail or
downside tale was considered a dead giveaway that the Specialist had gone out on a hunting trip to acquire
more inventory for one reason or another.
But nowadays the story is somewhat different across all excahnges , and this IDCC candle reveals a lot about the Market Makers in this stock and the breadth of the order book to either side of the real time PPS.
Basically, these Market Makers found Religon got a sudden urge to find every open order that they could and hoover the underlying shares into their cargo holds .
In just 15 minutes.
Just wait till something really IDCC specific happens.
The 700K is bigger than the next 10 blocks times 5.eom
I don't want to get in a debate but just wanted to point out a big fish came in and wanted shares and it has been my observation with many stocks but specifically IDCC it is wise to take notice. That is the point I most wanted to stress the amplifying info is my hunch on what it is worth to the big fish to even make the deal.
Yesterday someone bought 700K in shares. How do I know because the MMs took out stops way out of the range of normal trading to collect enough shares to fill the order(that's call take no prisoners). My bet is the 45M spent to own the shares know better than you what is going on. Now stop spreading your crap.
There are over 53,000 Sept. contracts between 70-120. Will they all expire worthless. I never tracked options closely but I believe that has to be some type of record for IDCC. Will OCT options aproach the same level? Will the option writers have another month to score the same lick or do opportunities to score this big on a stock for call writers normally happen once as a prelude before acquisitions?
Somebody was willing to buy aprox 45M in shares. For that kind of dough I would say that someone expects at least a double for the trouble if you get my drift.
I haven't claimed nor have I bought any shares lately.
No. His post just made me think. I have never saw IDCC trade 700-800K within minutes with a price spread as low as 61 and as high as 65. That is some major stops being fleeced, but more important there was a since of urgency like never before to manipulate the price to scoop up as many shares asap IMHO.