Rambus (RMBS)

[Skeptic]

From the Rambus 10k An acquisition of all of Infineon's DRAM operations could make it more difficult for us to obtain royalty rates we believe are appropriate and could reduce the number of companies in our antitrust litigation

Is this why everyone loves John Danforth so much? Had you been a fly on the wall at these settlement negotiations, this is what you might have heard...

RMBS to IFX - "We'd like to settle - Judge Payne of McGuire Woods has us by the balls."

IFX to RMBS - "Sure - we'll settle - these are the terms - you drop all lawsuits against us especially the AT suit because we have already admitted to fixing the price of RDRAM and you give us access to all your current patents for a period of forever."

RMBS to IFX - "And what do we get?"

IFX to RMBS - "We will pay you a trifling to keep your shareholders happy long enough for the executives to exercise some options. We will also give you access to our patent portfolio which you will never use. However, should we sell our business like we have been planning to do, the acquirer will get the same deal."

RMBS to IFX - "So basically you want us to give away the farm?"

IFX to RMBS - "Yes"

RMBS to IFX - "You got a deal!"