Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Jim Mullens who wrote (59061)	1/25/2007 1:54:10 PM
From: Q8tfreebe	Read Replies (1) \| Respond to of 197352

No disagreement there, that's the nature of an option...it must be exercise by the option holder and is not automatic. To me, the key phrase in Altman's statement is "before the current contract expires the April". With that, we now know the option exercise price (i.e. the 4+% royalty rate) and the option expiration date (i.e. April 9, 2007). My bet is that Nokia continues to rattle its sword and then exercises the option at 11:59 PM on April 9, thereby avoiding any attempted injunctions by QCOM and at the same time attempting to extend the overhang on QCOM stock through 2008. That's where MediaFlo could come in. If QCOM gains some traction with MediaFlo in the US and Europe, it would give QCOM an additional bargaining chip with NOK. If NOK doesn't deal, it could find itself left out of a part of the high end market (i.e. where at least initially most MediaFlo enabled devices will be). Keep and eye on the Cingular and BSkyB MediaFlo trials.