InterDigital Inc (IDCC)

[The Count]

GBR, IDCC EPS aren't going to drive the offers

If IDCC were selling to another NPE that was looking to license the IP, then EPS would be relevant. They are not. The value of IDCC patents to Google is primarily the amount it could save them in royalties and legal fees by cross licensing with other producing IP holders. They could potentially get licensing fees from other manufacturers that don't have IP to cross license, however that is a small part of the market. The cost savings from cross licensing will allow them to have a lower sales price on Android, allowing them to gain market share. That is what Google is going to look at when deciding how much it is willing to pay for IDCC.

Apple will be looking at that as well, and they will decide how much it's worth to them to keep Google from getting the IP that will allow them to drive prices down. Right now, the best thing for us would be a lot of buzz about Android. The more interest in Android, the more savings to Google vs. per unit royalties and the more threat to other manufacturers market share if Google can lower its variable cost per unit.

This is my layman's theory, and I have no expertise in this area, so if anyone with knowledge can point out things I missed, please chime in.