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I also question whether the U.S. Government has an interest in seeing the value of patents settle back down, post Nortel. Kinda like the federal reserve printing money, it might actually be the next way for Wall Street to make a new bubble. I am just happy to have a little skin in the game already and feel the timing couldn't have been any better.
I really hope to see an all-out bidding war for IDCC to ensue and this is a clear political maneuver to give Google a shot at winning by hook or crook.
In Google's attempt to kick their potential competitors in the shins and to get big brother crying anti-trust, what the article also betrays is that it is fine to do such a deal if perhaps you are also going after a great group of engineers. And that Google was the very first bidder in the act they are now calling a crime as a sore loser.
What's not to like about this article? You sure have become negative all of the sudden about everything that comes out. I also thought the last article was a hak job and was poor journalism, casting only FUD with no cites of authority whatsoever.
An offer must be close, that's all I can hope. Chum is in the water...
Yes, the irony of licensing shortfalls resulting in the value advantage of having lower encumbrances is hysterical LOL
It did have a comment regarding regulatory obstacles for China to overcome from the committee for foreign investment in the U.S., as I have been curious about this possibility for the TD-SCDMA patents.
Thanks for sharing that bullish information! That's a nice statement of expectations as compared to the prevailing share price.
IQ: I picked up on that comment, but the immediate come away from me was just biased bell-ringing like Icahn did, immediately riding IDCCs coat tails to take the spotlight.
This follows Accacia's sidewise commentary in an article immediately after IDCC declared they were in play that for the right price they would sell patents, and now this as further advertising. It made me feel their entire report was a subtle hack job and a flyer for Acacia, and possibly contributed to the pullback today as if our politicians were not doing their fair share to train wreck the market.
It could also be that on the numbers side, a new going forward rate has been established where it makes sense to cut a licensing deal and go it alone (i.e. Nokia, you blew it by not signing when we were offering x rate, at y rate you will agree to a license w/the devil you know, or else you will be paying z rate with the devil you don't).
This would effectively unlock the value of our IP, and suddently the baby Q has grown up.
I think they are just hoping for a deal that includes ongoing employment. Remember, that there are also the interests of management and employees. Shareholders have historically taken a back seat to those interests. Hopefully the stategic alternative chosen makes everyone happy.
Level II was working fine. I had trouble with Scottrade making any IDCC call purchases today saying that the contract for the security had a non-standard size or price, or something to that effect.
The broker ways that happens if say the contract does not represent 100 shrs. I had to call and have brokers enter my trades today. Of course, I thought it must be a conspiracy, so I had to pickup a few calls today.
I rolled a couple contracts out to January, and picked back up a couple of August 90s. I tried to buy again during the drop at the close, but no luck. Maybe I'll fill tomorrow in light of the earnings miss wink wink nod nod say no more
I also like the way William Merritt accentuated the ongoing value of their employee core competencies, a comment lending itself to survival in a buyout scenario...
InterDigital® also has a very strong capability in developing fundamental wireless technologies and managing patent assets with a well-regarded licensing program, the combination of which differentiates us from many other companies.
Noticing afterhours just ringing a 71 & 72 trade, I'll be ok if the rocket ship takes off before I have an opportunity to buy.
My answer would be there is comfort in the fact that the Nortel auction value of 4.5 Billion was for a company that had been in Bankruptcy proceedings for 3 years.
So how can one say that declining earnings on a short-term hold-out from LG who has already historically paid us for said patents (think fish on a hook), or declining earnings in general is going to take away the value of our IP, when our portfolio has arguably higher quality than Nortel and has a more current time reach out to 2040, with patent applications being filed daily as a still profitable going concern.
I expect the earnings to perhaps create a buying opportunity for those wrapped around the axle over the earnings and that primarly trade on that, versus the potential acquisition value post-Nortel.
I would say to pay attention to the volume and recovery if they shake the tree hard over earnings. I have a little dry powder to buy with following the earnings report.
Congrats Nic, we'll all be watching to see if your moods now have higher highs and lower lows now because your portfolio certainly will I dip my toes in some too. Best of luck to you, and be careful.
Does IDDC report earnings tomorrow after market close? Just checking into the timing of the earnings announcement. Hope all is well, Mickey.
jmspaesq, That's where the perfect storm will come in. If we win the ITC appeal, I think the MSFT/Nokia parnership will hit the wires like crazy and what is now being viewed as Apple against Google, may reveal itself to be a larger bidding war.
That would be another big leg up in the sharprice for sure.
I am just pointing out the reason why the TD-SCDMA portfolio should have interest to China - for the same reason it has interest to Google - to strenghten their position at the Global level on IP in a standard they only posture to completely own. QCOM and IDCC have both declared essential patents to those standards.
I hear what you are saying, but this provides an opportunity to China to somewhat alter their status, and show progress in respecting intellectual property values. How do you put a price on that? By putting a high price on it
Caveman, I have brought up the possibility of China being interested in the TD-SCDMA portfolio of patents and that it would have a logical and possibly a very lucrative stand-alone value.
I do not know how much that standard is still being pushed in China? You are right though, no other comments about it from any of the board technical experts.
It seems it would be an easy sum of the parts is greater than the whole scenario where we might get a $120 bid (or more) for the bulk of the portfolio, and who knows what else additionally for TD-SCDMA to maximize the overall bid.
IDCC has declared these are fundamental patents to the TD-SCDMA standards and was also elected as a founding member of a forum or associaton created for furthering that standard some years back - forgive my fogginess on the details.
China has postured about their ownership of this standard for years and the primary benefit to pursuing TD-SCDMA over other standards was minimizing what they would have to pay for intellectual property. This would allow a government controlled company (isn't that China Mobile?) to keep the reins on that standard, and collect royalties on other non-government controlled companies building to that standard.
Nicmar, I got your message from yesterday. Thanks for the good wishes and the very best of luck to you too. I hope this is finally our payday.
I hope they all have their heads down hashing out a deal alot better and faster than the politicians that are paid to govern - let's fire them all. I should come up with a different example because that doesn't even pick the bar up off the ground it seems.
Anyway, good luck to ya and hopefully can do a high five soon!
I also wanted to add that having a government-controlled chinese company step up to the table and walk away with this prize would likely be viewed as a better alternative than buying U.S. Treasuries at this point in time.
I don't think there is a worry about Google buyin IDCC being viewed as anti-competitive. It's a defensive move for them being cash poor and in the legal position of an indemnifier.
Who is to say companies from China will not pipe in to establish an IPR position at the global bargaining table, or to walk away with IDCCs fundamental TD-SCDMA patents.
Apple, Google, Microsoft etc., can all play in this game with no worries IMO
For these reasons I hope we still go north on the shareprice, and let the bidding wars ensue.
I think it is all speculation at this point on Apple/Hulu. Of course, I also would personally speculate that if Microsoft is backing off on Hulu to join the patent wars that things will get interesting very soon.
While on one hand I think in terms of the IDCC portfolio that the parts could be greater than the whole, and if that approach is taken this will be a long process.
On the other hand, IDCCs timing was superb and the odds of the whole enchilada going to a bidder with deep pockets and a purpose right now are also very high coming off the Nortel Auction. IDCC has presented such a unique opportunity to these big players.
The fact that IDCC has hired Barclays and Evercore has me leaning toward the latter as playing out, and when you see folks like Icahn screeming like a baby that he didn't think of that, it also highlights that sometimes timing is everything and I hope they seize this opportunity to maximize shareholder value.
Microsoft backing off Hulu bidding. This post is not directly applicable to IDCC, but it's a good time to be watching every chess piece on the board right now. Microsoft could easily step into the IDCC bidding given the extremely strategic impact of this acquistion to Nokia.
http://www.fool.com/investing/high-growth/2011/07/23/microsoft-loses-interest-in-hulu-up-next-apple.aspx
The only way I will ever believe this story is if we have an offer on the table from Google by the end of next week. Hope it turns out to be true.
If I were Google, I would buy IDCC for whatever it takes and then tell that story and stick to it - whether it's true or not! A nice and funny theory
Yes, but I believe statements of interest were made by spokespersons from Google and Apple, where Qualcomm's interest was a writer's/analysts conjecture. Not 100 percent sure I have it correct, either.
I think in addition to Google that Apple has represented an interest openly. I don't think any other names have been put forward yet as having an interest.
It may be a flat line, but there could still be an upward slope to it Anyone's guess.
While some analysts are using terms like Frothy and Bubble, others are using terms like Patent Wars and that patents post-Nortel are becoming a new asset class. So not all analysts are calling this insane. I am still very happy about the timing of IDCCs announcement they are exploring strategic options that may result in a sale.
I also think the TD-SCDMA patent family could have a stand-alone valuation all it's own to the right customer.
IDCC may be taking a rest or consolidating now, but watching OSCAR this morning we are breaking out of a nice cup and handle formation on Trasnportation, Dow, Nasdaq, E-mini S & P. Markets maybe ready for a run.
A favorable decision or Tender off any time now would be the perfect storm.
Today the question will be - do you want to be out of the stock when news hits the wires, and in the case of a tender offer, we might even see trading halted on the stock.
Good luck to the longs...congrats to Dozer and many others I'm sure, and hopefully the shareprice will take another leg-up soon
to the benefit of everyones financial security.
Definitely this 75 area is showing to be a point of resistance. I don't expect the price to topy 82 until a tender offer validates the worth of the portfolio.
I personally hope for a clean buyout where the value of it can be easily interpreted and acted upon by the general market. Keep it simple please. Abide by the KISS principle and everyone will be happy.
Nope, management relinquished the poison pill some time ago. It did not require a shareholder vote. There is nothing in the way of an acquisition if the price is right.
I have no argument at all with the possibility Google is already funding an acquisition ever so slightly on gain of owned IDCC shares, but there has been no filing of beneficial ownership yet. They could have played that game for sure up to a point if that is what your implying. I hope so.
Perhaps they haven't spoken yet because their 900 Million dollar stalking-horse bid is after-the-fact openly being called a lowball offer and considered an invitation card for others to trump - which they did, and how do you not make that same mistake twice if you are once again first to announce yourself at the table?
The obvious answer, and especially given the public perception now of their own need for such a portfolio, is for Google when they do announce their offer to consider putting forward a respectible one from the outset of negotiations.
What I like about Icahn's filing to the SEC regarding his "letter/discussion" to/with Motorola management.
1) It is completely obvious he has a case of penis envy over IDCCs patent portfolio
2) Every newsire update (#5 now) on the subject has IDCC linked to it and the story really is all about IDCC, and it just gives more attention to the valuable patents that IDDC has
3) Icahn is being himself X 2 - He already was successfull in getting Motorola to split up the company!!! and analysts are shaking their heads wondering "What will there be left if we do it again?"
classic Icahn rant... the parts are worth more than the whole (again!!!)...ok, fine, let's move on.
The entire news story can be summed up as "He wishes he owned IDCC stock right now"
OT: Thanks Postyle & Dozer EOM
Apple joins Hulu bid talks...just out
What a showdown coming between Apple, Microsoft & Google. Good timing for IDCC to be on the chess board right now.
http://www.reuters.com/article/2011/07/22/hulu-apple-idUKN1E76K2EJ20110722?type=companyNews
And that suit of armor comes with a sturdy shield,a sharp sword, and is guarding a booty chest of 1/2 Billion dollars and a paid-for dungeon full of engineers building onto this Asset Class of it's own every day.
Folks, this is the quote from IQs link that sticks out the most for me:
"Every Wall Street arbitrager figured out something sold for $4.5 billion," Epstein said. "I’m not sure anyone on Wall Street understands what a patent is, and it’s going to take time before anyone figures out whether InterDigital is going to go through what Nortel did."
My comment: So much for the efficient market theory - we got room to run, baby!!!
Jeffries obviously weighed in today, with a nice round 10 Billion dollar estimate - and they do know InterDigital, and it leads to a strong possibility we absolutely will go through what occured with the Nortel Auction, and that we are way undervalued. What we have all known, right! It may in retrospect be seen that the Nortel Auction was the catalyst that brought a Crown Jewel onto the market in a perfect storm.
At this point - everyone else jumping in behind is just a follower. InterDigital has stepped up with the right goods at the right time. We have a very current, and a highly valued forward-looking patent porfolio that will be one of the strongest suits of armor any suitor could possibly buy.
To me, this says that there will be alot of new traffic on the board, and hopefully also combing through the resources at Wireless Ledger.com
It's obvious views vary widely about management and their effectiveness, or circumstance. Kudos to those who only vented about it, yet didn't sell a large percentage of their shares in frustration about one thing or another.
At this point, let's all agree to disagree and enjoy the ride, since alot of folks are going to be sizing up InterDigital and what it is worth. It will be nice to see discussion surrounding the companies value (over mgmt bashing), and perhaps some efforts should be made to organize the due diligence postmarks and links to highlight not just the list of licensees, but the studies and graphs that have been put together that sizes up InterDigitals patent portolio. Or maybe it's all good and I just need to review them again.
Good luck to all, and I hope this is only the first leg up!
Funny thing about this announcement is that it's hardly new news. Motorolla Mobility has had at least a couple of recent patent sales as part of the spin-off of Motorolla Mobility.
I know that one was a sale of patents to Microvision (MVIS) related to laser PICO projector technology. Motorola back in 1997 had entered into an agreement with Microvision to develop a laser PICO projecter into mobile phones, just a little ahead of their time since direct green lasers are holding that market back. I believe there was at least one other patent sale as well to another company.
I would be interested to hear comments from some of the tech gurus like DataRox and IQ (and there are many others) about the value IDCC might gain by a bundle and sale of the TD-SCDMA patent family separately, and how advantageous that approach might be?
It seems this set of patents, that include some very fundamental to that standard, might have an extremely high value to the likes of both QCOM and many chinese companies in a competitive bid situation.
Because of the recent Nortel auction it seems the focus is all about LTE, but the TD-SCDMA patents could be quite a gem for IDCC, and might have a very high lump-sum value to a government-controlled company in China wanting to champion and control their own wireless standard.
Congratulations to all! I hold 1/10 of the shares I used to, but I still have a decent number of shares in both a traditional & roth account, along with some Sept. and Jan calls, so I am grateful for what I do have, and also happy for all the deserving long-term investors who held firm through times of doubt. I hope management and the BOD is working with sincerity to reward those folks the most by maximizing shareholder value.