Now here's a thought...
Caveman Cooking Comments (6)
My wheels are spinning. So, I thought I'd throw it out there to see if it floats, plus it is kind of along the lines of your question. But, before I digress, let me say that EK's patents are mostly for digital imaging and MMI's are nowhere near the importance of IDCC's. For 4G/LTE alone, IDCC has somewhere between 20% and 27% (depending on the source) of all the essential patents for the protocol. This isn't even taking into account their IP for Cloud, M2M, bandwidth expansion, etc. Do some research and you will find that IDCC is the wireless IP king ... a fact, not an assumption.
Now, on with the scenario:
What if GOOG, or APPL, or .... buys 1300 essential (the same amount that NT sold off) IDCC patents for the same price of $4.5B. IDCC keeps the rest (including M2M, Bandwidth, etc), and doles out a $78 per share ($3.5B) special dividend in cash. The company would then have a war chest of $1.75B ($1B leftover, plus $500M cash on hand, plus $250M from recent convertible offering), all the rest of the patents (6500, plus 10K pending) and their continued cash flow, and the rest of the enterprise (including the 200+ engineers who come up with these patents). I don't think it is reaching too far to see this scenario happen.
What would the PPS be after the special dividend? IDCC would be sitting on $39 per share in cash, plus the continued value of their business and their IP. You'd have to think $80 to $90 per share would be a very conservative estimate.
Thoughts anyone? This was a comment on a Seeking Alpha article today.
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