Replies to post #328018 on InterDigital Inc (IDCC)

[israt]

All it takes is two

israt

[jmspaesq]

Not just multiple bidders/multiple bidders with $$$

Tons and tons of cash. And highly motivated bidders too.

Which presents the possiblity maybe the probability that we might get MORE than 'fair value'

Again IMHO the MINIMUM initial bid will be $125, I think it will be more than $150 possibly as much as $175-200 and I don't think that is high enough to prevent other bidders from bidding--both because even if they lose they want whoever wins to have to pay as much as possible.

And I think Google will be the initial bidder and then APPL and MSFT want to drive up the price to make Google pay AND to confirm the value of the Nortel IP they just bought.

I think the Google move to buy 1000+ IBM patents is a sign that they know they need to accumulate IP--I wonder how much they paid for the IBM patents?

And honestly I think that Google realized when the moved into the mobile OS business that they needed to do so to remain relevant in the future of computing which will be smartphones/tablet devices/telecomputing/convergent technologies. And they did a great job with Android, won the market share and dominance and now that dominance and their relevance is threatened.

Google NEEDS to win this battle to remain in the war.

I think APPL will bid the price up but that the worst case for them is this results in a truce with Google and Android OEMs--they;ll be happy to buy IDCC but if they lose they want to hurt Google by making them pay through the nose.

I think MSFT is also highly motivated because they have to realize that they missed the boat, their OS sucks as usual but unlike the PC market where they had their products embedded in most PCs sold (other than APPL computers and some small % of techies and nerds who would install a different OS like a Linux based OS) and they could leverage their other Office products in those PCs and get paid by OEMs as much or more than individual consumers--so their best hope is to profit from Android devices OR put Android OEMs outta business or into making Windows phones. They would get a discount if they are really partnered with NOK (discount of past due revenues and future revenues NOK owes IDCC) and NOK could administer their patents offensively as they did vs APPL...

So once again the perfect storm with IDCC in the eye and IDCC investors profiting beyond their wildest dreams...

JMHO

[cabbieJBJ]

Competitive bidding is crucial.

Those that reference the Nortel patent price, do not forget that there were mutiple bidders and that as much as strategic holding of the patents is what drove the price up.

It is up to Evercore and Barclays to engineer the bidding war. Without one, triple digits may be unrealistic.