Replies to post #352824 on InterDigital Inc (IDCC)

[ABXX]

Well I think the bid difference between Nortel and IDCC auction/SR is Nortel was bankrupt and there were actual deadlines since it was an asset sale in BK court, whereas with IDCC's SR there was no real definite deadline, except for maybe in early Sept when "first round bids were due," (if that was true) and maybe IDCC BOD and BCS/Evercore might have had a deadline in mind, the bidders were not legally bound to meeting the deadline like they were in bankruptcy court with Nortel.

BM said in the CC they couldn't get consortiums to form, well didn't look like Nortel had a problem with that in their patent auction, so I think the main reason IDCC's SR fail to get a bid for the whole company was is it's harder to get a consortium to form in a SR compared to a bankruptcy auction, and not only that, but it's harder to get companies to bid for the whole patent portfolio like they did in the Nortel auction.

So owning shares of IDCC is probably better than options at this point because if IDCC is only able to sell parts of the patent portfolio, then it's going to be harder to gauge when these sales will happen, ie 3-4 different sales could happen in a span of anywhere from 6-24 months. But I still see a problem with that, say IDCC has one or two successful sales in the next 6 months and IDCC runs up to the 50's, well what if nothing really materializes after that including licensing, the stock could go back below $50, then as a shareholder you'd have to decide "is it time to cash in at say $55 or hope there's more success in patent sales/licensing and possibly sell for say $65+?

It seems like it would make sense for one company to buy IDCC and sell off the patents they don't need to other companies and "control the goods," but at the same time it doesn't look like any of these companies are in any rush to bid for the whole company or join a consortium unless a patent sale is in bankruptcy court. I still don't know what the bid deal is with a company acquiring encumbered/licensed patents, BM said in the CC that's one of the main reasons why companies "backed off" from bidding for the whole company.