InterDigital Inc (IDCC)

[magillagorilla]

Fish - Yes, a deal/business merger/technology agreement, could be a good, provocative and unforeseen development that we would all revel in, yes? Too bad, so sad, that they chose to spend 12.5 B to buy Motorola Mobility instead, not that it solved their lack of patents issues. Who knows what has been going on behind closed doors.

OLD NEWS:

Google in Talks With Wireless Patent Firm
By ANUPREETA DAS
July 21, 2011

Google Inc. has had preliminary discussions with InterDigital Inc. about a possible acquisition of the wireless technology developer and licenser as the company seeks to beef up its patent portfolio after failing to acquire a trove of technology patents from Nortel, people familiar with the matter said.
Google, which owns the fast-growing Android operating system used in millions of mobile phones, has a thin portfolio of wireless and telecommunications patents. That makes the Internet search giant vulnerable to patent-infringement lawsuits.

Google has held talks to buy wireless technology developer InterDigital as it seeks to beef up its patent portfolio, after failing to acquire a trove of patents from Nortel earlier.

An acquisition of InterDigital's intellectual property could help insulate Google's Android franchise from a growing number of lawsuits against device makers such as Samsung Electronics Co., HTC Corp. and Motorola Mobility Holdings Inc., which use its software to power their smartphones and tablet computers.

InterDigital said Tuesday it hired Evercore Partners and Barclays Capital to explore strategic alternatives for the company, including a potential sale. The company's stock soared 28% Tuesday and shares rose another 15% on Wednesday to $68.67 in 4 p.m. Nasdaq trading.

Google's interest was prompted by the recent $4.5 billion deal for Nortel Networks Corp.'s patents portfolio, one of the people said. A group of technology companies, including Apple Inc., Microsoft Corp. and BlackBerry-maker Research In Motion Ltd., agreed to buy Nortel's portfolio of some 6,000 patents,containing intellectual property relating to wireless, Internet and other technologies, in a bankruptcy auction. The price the patents fetched was five times the $900 million Google had initially offered in a "stalking horse" bid.

On Wednesday, Eastman Kodak Co., which has been battling Apple and RIM over patent infringement, said it had hired Lazard Ltd. to explore a potential sale of its digital-imaging patent portfolio.
Part of InterDigital's decision to explore a sale was spurred by Google's interest, and the two companies have been in touch in recent days, the people said.

A spokesman for A spokesman for King of Prussia, Pa.-based InterDigital declined to comment on Google's interest, but said the company's patents and engineering and licensing capabilities could be of value to several potential buyers. A Google representative declined to comment.

In recent years, technology companies have fought bitterly over intellectual property amid the surging use of smartphones and other mobile devices, a competition that has created rivalries between older phone companies, such as Nokia Corp. and newer entrants such as Apple and Google.

InterDigital owns and licenses about 8,800 patents relating to transmitting wireless data, canceling noise interference during phone calls and other technologies for use in cellular phones and networks. Its patent portfolio is built mainly around handsets, and covers different wireless standards, making it an attractive target not just for Google, but also for other large telecommunications and technology companies. Founded in 1972, InterDigital's team also invents new technologies it potentially can patent—representing new sources of revenue.

The company expects to fetch a price that not only reflects the value of its patents, but the long-term recurring revenue that stems from licensing patents, the people said. Financial advisers will likely reach out to a wide number of technology companies as part of the auction, they said.
—Amir Efrati contributed to this article.
Write to Anupreeta Das at [e-mail]

http://www.wsj.com/articles/SB10001424053111904233404576457842513189166

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Mon Aug 15, 2011
InterDigital skids after Google goes for Motorola Mobility

BANGALORE | BY SAYANTANI GHOSH
Shares of InterDigital Inc plunged 23 percent on Monday after Google's $12.5 billion Mobility Holdings buy sparked worries that the search giant may no longer be interested in the company's wireless patents.

Companies like InterDigital have come to the fore after Apple, Microsoft, RIM and three other companies colluded recently to thwart Google's mobile ambitions, outbidding it in a multi-billion dollar auction for Nortel's wireless patents.

In July, InterDigital said it was looking at a possible sale of the company and the Wall Street Journal had later reported that Google might be in the race for its patents.

"Google may have already lost its bid for the IDCC patents and is announcing a Plan B before anything else happens to IDCC; or may be Google prefers the Motorola patents over the IDCC patents," M Partners analyst Ron Shuttleworth said.

Interdigital makes most of its money from licensing its patented technology and from damages it wins in patent lawsuits.

Companies like InterDigital, with strong patent holdings, can force rivals to pay fees for using their technology or to form cross-licensing agreements.

Last month InterDigital filed a complaint against Nokia Corp, Huawei Technologies Co Ltd and ZTE Corp, accusing the cellphone makers of infringing seven patents.

The company holds and licenses around 8,800 patents that range from basic wireless telecommunications system designs and processes to increase network coverage to ways of extending battery life and making more efficient use of bandwidth.

Analysts, however, said the possibility of Google still being interested in InterDigital cannot be ruled out.

"One can never have enough patents and the reasons they would be interested in Interdigital are still mostly intact," BGC Partners analyst Colin Gillis said.

Some of InterDigital's patents are essential for international telephony and will not overlap with those that the Motorola buy will bring home to Google, analysts said.

Some other IDCC licensees such as Samsung Electronics, LG Electronics and HTC Corp, which are battling Apple's rising popularity, might buy the patents, said M Partners' Shuttleworth.

He expects InterDigital, which has a market value of $3.44 billion, to fetch a $5 billion price.

Shares of the Pennsylvania-based company were down $16.47 at $59.25 in heavy midday trading, making the stock the top percentage loser on Nasdaq.

Before Monday's losses, the stock had climbed 83 percent since July 19, when it said it would sell itself.

(Reporting by Sayantani Ghosh in Bangalore and additional reporting by Phil Wahba in New York; Editing by Saumyadeb Chakrabarty)http://www.reuters.com/article/us-interdigital-shares-idUSTRE77E3FA20110815