InterDigital (IDCC) Worth $107-$145/Share Based on Motorola Mobility and Nortel Sales
Tweet Send to a Friend
Get Alerts IDCC Hot Sheet
Price: $44.51 -5.16%
Overall Analyst Rating:
BUY (
Up)
Dividend Yield: 0.9%
Revenue Growth %: -31.7%
Overall Analyst Rating:
BUY (
Up)Dividend Yield: 0.9%
Revenue Growth %: -31.7%
Trade IDCC Now!
InterDigital, Inc. (Nasdaq: IDCC) continues to be a battleground stock as bulls and bears position on a potential sale or non-sale of the company.
The bulls were handed a big defeat Monday after Google (Nasdaq: GOOG) acquired Motorola Mobility (NYSE: MMI), seemingly leaving InterDigital at the altar. Shares plunged.
However, these same bulls believe Apple (Nasdaq: AAPL) or another suitor could still acquire the company and its treasure trove of patents.
Analysts at Goldman Sachs did a quick analysis on the per-patent sale price of Motorola Mobility and Nortel. MMI has 17,000 current and 7,500 pending patents. According to Goldman, Google paid roughly $550,000 per current patent for MMI, ex-$3.2 billion in cash. For Nortel, Apple, Microsoft (Nasdaq: MSFT) and RIM (Nasdaq: RIMM) paid about $750,000 per patent.
InterDigital currently has approximately 1,300 current U.S. patents and approximately 7,500 current non-U.S. patents, or a total of 8,800 current patents. The company also has 1,200 pending applications in the U.S. and approximately 8,500 pending non-U.S. patent applications.
Based on the sale of MMI and the company's current patent portfolio, InterDigital is worth $4.84 billion, or about $107 per share. Based on the sale of Nortel, InterDigital is worth $6.6 billion, or $145 per share, based on its current patent portfolio.
The question for bears to answer: Are InterDigital's patents worth as much as MMI's and Nortel's?
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The bulls were handed a big defeat Monday after Google (Nasdaq: GOOG) acquired Motorola Mobility (NYSE: MMI), seemingly leaving InterDigital at the altar. Shares plunged.
However, these same bulls believe Apple (Nasdaq: AAPL) or another suitor could still acquire the company and its treasure trove of patents.
Analysts at Goldman Sachs did a quick analysis on the per-patent sale price of Motorola Mobility and Nortel. MMI has 17,000 current and 7,500 pending patents. According to Goldman, Google paid roughly $550,000 per current patent for MMI, ex-$3.2 billion in cash. For Nortel, Apple, Microsoft (Nasdaq: MSFT) and RIM (Nasdaq: RIMM) paid about $750,000 per patent.
InterDigital currently has approximately 1,300 current U.S. patents and approximately 7,500 current non-U.S. patents, or a total of 8,800 current patents. The company also has 1,200 pending applications in the U.S. and approximately 8,500 pending non-U.S. patent applications.
Based on the sale of MMI and the company's current patent portfolio, InterDigital is worth $4.84 billion, or about $107 per share. Based on the sale of Nortel, InterDigital is worth $6.6 billion, or $145 per share, based on its current patent portfolio.
The question for bears to answer: Are InterDigital's patents worth as much as MMI's and Nortel's?
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- J.P. Morgan (JPM) CEO Dimon Might Have Enough Votes to Stay Chairman - NY Times
- Royalty Pharma Raises Elan (ELN) Bid to $12.50/share
- UPDATE: Cell Therapeutics (CTIC) on The Move
Create E-mail Alert Related Categories
Insiders' Blog, Rumors, Trader TalkRelated Entities
Motorola Mobility/Google
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
