"...in the event of a takeover of Q, all IPR reverts to the public domain. Can anybody else verify that?"
I cannot find a reference, but know I read/heard that somewhere from a reliable source. Possibly from a conference call. I seem to remember a question about a friendly take over, and management replying that it would only apply in case of a hostile takeover. It would be a good question for the IR department or at the shareholders meeting.
A little history: Dr. Jacobs' first company was LINKABIT. He built the company from a two person part time consulting business into a promising player in the wireless communications business. (See my message in the WirelessKnowledge thread for a few more details).
siliconinvestor.com
LINKABIT was bought out in the mid 80's by a bigger company that saw it's potential. Dr. Jacobs and other key engineers, now very rich men, stayed on as employees. The big company (whose name escapes me at the moment) started making big company type changes (reference is hereby made to Dilbert, the cartoon strip), with the result that most of the best engineers and managers left, many to start their own companies. (33 companies, including Qualcomm, can trace their roots to LINKABIT, either through spin-offs or from former employees starting their own enterprises). LINKABIT is still around as a subsidy of some other company, but has pretty much faded from the radar screen.
Dr. Jacobs was so disgusted that he resigned, and eventually started a new company, QUALCOMM. Smart man that he is, Dr. Jacobs determined that he would not make the same mistake twice. To prevent his new company from being taken over like his last, he arranged it so that in the event of a hostile takeover, all IPR would become public domain.
Of course Harvey White and others from LINKABIT came with Irwin and also deserve much of the credit.
Well, anyway, that is the way I remember it.
This makes sense from another perspective. What motivates Irwin Jacobs? He is already filthy rich. He has already pioneered a new industry. He has more accolades from the scientific and public service communities than anyone could dream of. I get the impression that he is no where near ready to retire. I also get the impression that he could not work for anyone else again. He needs to have his own company, and if QUALCOMM was taken over he would have to go out and start from scratch. If an outrageous offer was made, say $200 per share, he would support it because he understands his fiduciary responsibility to shareholders, but at a personal level I would bet that he would not want to sell the company at any price. I think Irwin is exactly where he wants to be, doing what he wants to do, and taking QUALCOMM where he wants it to go. I am happy to tag along for what should be one heck of a fun and profitable ride.
All IMHO.
Great Investing to All,
Steve
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