JGoren, "If you are correct, then Qcom will try to buy IDC."
I think you are really on to something here, JGoren!
I would not be at all surprised to see QCOM try to acquire InterDigital sometime in the next 12 months. And QCOM may find IDC to be a willing seller. IDC has hired an investment banker, Morgan Keegan, specifically to evaluate buyout proposals. See a few paragraphs on that subject here:
telecomtechstocks.com
Some reasons you may be right on target about QCOM buying IDC:
1. With current share price, QCOM has plenty of assets to accomplish such a buy out of IDC at minimal cost to QCOM shareholders.
2. Both IDC and QCOM have common roots from years ago, previous IDC management, cross licensing etc. See paragraph on this:
telecomtechstocks.com
3. With IDC's 800 patents added to QCOM's patent portfolio (also immense),QCOM would have IPR's on both TDMA/GSM and CDMA wrapped up tight. See 3 paragraphs related to this and No. 2 above at:
telecomtechstocks.com
4. IDC's previously contested foundational TDMA and GSM patents have now apparently been revalidated by the U S Patent Office. Further, IDC won last year at the appeals court level in Europe on similar foundational TDMA and GSM patents. IDC has followed QCOM's lead in getting patents which were challenged by Ericsson revalidated by the U S Patent Office. ERICY settled with QCOM almost immediately after QCOM's patents were revalidated. I bet ERICY will also settle quickly with IDC when official notice of revalidation is isssued in next few weeks.
See these links to two brief stories about the very important IDC litigation against Ericsson, which is reaching a climax. The patterns of how IDC nad QCOM have litigated with Ericsson are fascinating. IDC and QCOM both probably learned a great deal from the IDC-Motorola litigation of 1995 over patent claims.
See:
telecomtechstocks.com
and see:
telecomtechstocks.com
IDC would probably not entertain a friendly takeover by QCOM until IDC settles with Ericsson out of court or in court. With IDC patents just revalidated, settlement in IDC's favor looks very good. Some sources say ITU is pressuring IDC and Ericsson to settle this month just as they pressured QCOM and Ericsson to settle earlier.
Well, this is perhaps a longer response that you anticipated, but your suggestion may be quite close to actuality, given present realities.
I'd be interested in anyone's thoughts on JGoren's suggestion.
Bill |
