InterDigital Inc (IDCC)

[The Count]

Why didn't anyone look at IDCC BEFORE

They did, however IDCC's value and near term potential based on fundamentals was above what they were willing to pay. Google was hoping to get Nortel for under a billion. The auction showed that patents are much more valuable than previously thought. Now the value of the patents as an asset likely exceeds the market valuation of the projected earnings stream, especially over the short to mid term.

The Nortel auction changed the game. The difficult part for me is I really have little knowledge on how to value IDCC now. I don't know how IDCC's patents compare to Nortel's, or how they fit in for Google, Apple or others. I don't know how willing potential buyers are to get into a bidding war. If the value of IDCC patents is to cripple Google, would that raise anti-trust issues? IDCC is not going to comment until they think it is appropriate (don't hold your breath) or required by law, which means that I the only information is going to be rumors and guesses until there is an offer of some sort. Given that Nortel auction process took about a year and IDCC's patents are only now getting serious consideration, this process could take many months. If it does, then I will probably develop an ulcer and high blood pressure. And I hate to think about the posts as people get crazy waiting in the dark and options start to expire.