Ask yourself why did Intel buy Infineon Wireless last year? Did you know that Infineon makes all the WCDMA RF/communic. chips using a sole 3G/HSDPA license from IDCC for the Apple iPhones.
Ask yourself why did Intel just raise $5B two weeks ago in a non-convertible bond offering that was done very quietly and their first in over 20 years. They did that despite having $5B in cash, $5B in short term investments and $2B long term investments. What are they planning on using the $5B in cash for? http://www.bloomberg.com/news/2011-09-14...
Intel is planning on battling QCOM in RF chips as their PC processor sales growth is stalling with the gradual consumer move to tablets and smartphones. They will definitely bid on IDCC. Hell, they bid $1.5B on a weaker pool of Nortel patents before partnering with google in an eventual bid of $4B before finally pulling out on day 3 (per the India times article above). What's at stake for Intel? How big is this market for RF chips: try $15 to $25/chip x 1.4B phones a year = Greater than $20B market. QCOM sells their chipsets for $18 to $25 (with over 400M chipsets expected in 2011) and then collects 3.25% on the final sales price of each phone.
Now consider that Intel runs near 60% gross profit margins, builds all their own chips, while QCOM has to outsource production to TSMC and you can see why Intel has an interest in IDCC. You can also see why QCOM will make sure to try and keep it out of Intel's hands or force them to pay a premium so as not to give Intel an easy entry into their space.
Google also intends to make sure that Apple does not gain more patents in their battle and vice versa. The asian consortium, while not cash rich, also hopes to gain patents to fend off rising litigation battles and costs. The $1-2B bid from the deal reporter means nothing as that is just the tip of the ice berg in a bidding war that started this week. I am hoping, like the Nortel auction, that this 2nd round is done in less than 10 days.
IMO, the only people that know what every single bidder is bidding is the top 3 or 4 IDCC officers, the IDCC board, and IDCC's bankers...and they aren't going to leak a thing if I know William Merritt as well as I think I do.
So don't let absurd rumors get you down or allow your shares to get taken.
The only fear I have is that the board will not accept a legitimate offer in the $85 to $100 range. A price tag that I am willing to accept.
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