Qualcomm(QCOM) -> SpinCo Message Board

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Technology Stocks : Qualcomm(QCOM) -> SpinCo

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To: w molloy who wrote (6)	7/26/2000 5:09:37 PM
From: slacker711	of 172

Despite what Jacobs said yesterday, I think the reality of the situation will be that SpinCo pays royalty to QCOM and this royalty will be factored into the price of the chips SpinCo sells onto (say) NOK. If this does happen, it is going to have to be at a reduced rate vs. all of the other chipset makers. It sounded like SpinCo was going to agree to allow Qualcomm acess to any NEW patents that SpinCo would develop. This has to be worth a pretty significant amount to Qualcomm..... One other thing to note is that all of the analysis I have seen uses the pro-forma earnings from the chipset division. Since QCT currently pays royalties, their gross margins could go up by another 5% (if you believe Dr. J). Any guesses at the proposed valuation for SpinCo? Slacker

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