InterDigital Inc (IDCC)

[mschere]

Most acquisitions are priced at a multiple of current or future earnings, and or the value of its Tangible assets and Public Companies require a Third Party Investment Bank Appraisal to sign off on the Equity & Fairness of the purchase and/or sales price to protect the BoD..Where there were no earnings (Major losses for three years) as in this instance..an appraisal of the assets are reviewed to establish fair value.
Any fair & equitable price for IDCC would have to value its earning power from the royalty stream generated from 100% of 3G handsets sold in the next three or four years, as well as other Financial factors.. per Wm. Merritt's statements, and its Investment Bankers Appraisal and not as per Internet posters..

From IDCC's CEO
The mobile handset market is already the largest consumer product market, with total sales projected to exceed 1 billion by 2009. 3G phones are an increasing - are increasingly larger part of that market. Our goal is straightforward, derive revenue off of every 3G unit set that's sold.

Some may say that's a lofty goal. I believe it is achievable, given the assets of this company. So look for us to continue to grow, both our portfolio patents relevant to terminal units, and the value of technology and product offerings that we can bundle appropriately with the patents. As we do that, we will continue to add customers and licensees in that space.




OT: mschere: What is interesting is that while the board has been talking about a buyout of IDCC at $30, which would be a substantial premium to current prices, Nokia's proposed buyout of SYNC at $5.25 cash per share, is actually a discount from the recent high at $5.85 reached yesterday