SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike Buckley who wrote (28860)7/26/2000 2:14:10 PM
From: w molloy  Read Replies (4) of 54805
 
Mike wrote "Qualcomm is in a sticky position of having to sell to competitors,"

How are NOK and MOT in competition with QCOM today?
Another way of asking the same question, why would MOT or NOK buy chips from SpinCo if they won't (directly) buy chips from QCOM?

SpinCo IS QCOM sans a big chunk of IPR.

SpinCo makes it easier for companies like NOK to access
QCOM technology. SpinCo has just enough IPR to participate in any WCDMA patent pooling process, but it will also pay a royalty to QCOM. SpinCo becomes a 'one stop' shop.

If NOK chooses to continue on its own way with WCDMA, it has to participate in the patent pool AND still deal directly with QCOM.

I submit that this exersise is essentially face saving, with underlying business benefits.

Jacobs said he will never participate in any patent pooling deal. SpinCo helps him achieve this.

Jacobs is joined at the hip to CDMA2000.
SpinCo can agressively pursue WCDMA/UMTS business, in concert with CDMA2000, but leave the promotion of CDMA2000 to it's parent.

SpinCo could potentially be a better investment than it's parent. Also - QCOM becomes a great looking trading stock, especially if one studies the behavior of HP and 3COM regarding their spin-offs of Agilent and Palm, respectively.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News