If a buy-out were to occur, I would want a minimum offer of $20 billion for the joint patent portfolio, which is good until 2015.
"According to the Semiconductor Industry Association (SIA), global chip sales are forecast to grow $214 billion in 2005. SIA is projecting a compound annual growth of 11.8% for the industry through 2007."
"Global sales by potential licensees of products applying technologies [ie. cell phones, smart cards, remote controls, appliances, portable computers and devices, motor controls, automotive systems, etc..] protected by the jointly owned patents are estimated to be greater than $200 billion annually."
"TPL and PTSC believe at least 3 of 10 patents are elemental to virtually every microprocessor design..."
Two of the largest chip-makers in the world already signed up as licensees for the joint patent portfolio. #1 Intel reported on July 19, 2005 second quarter revenue of $9.2 billion and is forcasting revenue in the 3rd quarter to be between $9.6 billion & $10.2 billion.
#2 AMD on July 13, 2005 reported second quarter revenue of $1.260 billion and expects microprocessor sales growth to exceed normal seasonal patterns.
I know it sounds ridiculous, but if Verizon is willing to acquire MCI for $8.5 billion, whose net lost exceeds $3 billion in '04 and total assets over $4 billion, I would say +$20 billion is a reasonable offer for the joint patent portfolio ($10 billion each to PTSC and TPL).
A private investor group such as Silver Lake Partners, who recently acquired SunGard for $11.3 billion, would be able to afford the $20 billion price tag. SunGard's 2004 reported revenue was $3.56 billion, with 10,000 employees that serves more than 20,000 custmers. Silver Lake Partners investment portfolio also includes Ameritrade, Flextronics, NASDAQ, Seagate, Network General, Thompson & UGS.
With total assets exceeding $109 billion, IBM could also afford the +$20 billion price tag which could boost their previous annual net income of $8 billion. This patent monster currently has a patent portfolio of 40,000 active patents worldwide. And, they have the resources to enforce the joint patent portfolio.
