Rumored Bids for InterDigital (IDCC) Were Not for Entire Company; Shares Rebounding
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After dropping as much as 23 percent Monday afternoon on rumors bids of only $1 billion to $2 billion were submitted to the company, investors in InterDigital (Nasdaq: IDCC) are buying the dip Wednesday.
The Street may be heeding a call from Forbes last night which suggests those $1-$2 billion bids were only for a portion of the company. According to one source, there have been multiple bidders involved in the process. The bidders, Forbes said, are forming more than one group for InterDigital's patents.
Companies like Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), Sony (NYSE: SNE), and others did the same thing when making a move on Nortel's patents a few months back. Though patents from Nortel sold for an aggregate $4.5 billion, no single company paid that much.
But the headline was certainly a shock to investors. At $2 billion, the bids would have been about 25 percent below the $2.6 to $2.7 billion market cap it was at on Monday.
InterDigital shares are bouncing nicely Wednesday, up 7.3 percent to $55.14 at last check.
The Street may be heeding a call from Forbes last night which suggests those $1-$2 billion bids were only for a portion of the company. According to one source, there have been multiple bidders involved in the process. The bidders, Forbes said, are forming more than one group for InterDigital's patents.
Companies like Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), Sony (NYSE: SNE), and others did the same thing when making a move on Nortel's patents a few months back. Though patents from Nortel sold for an aggregate $4.5 billion, no single company paid that much.
But the headline was certainly a shock to investors. At $2 billion, the bids would have been about 25 percent below the $2.6 to $2.7 billion market cap it was at on Monday.
InterDigital shares are bouncing nicely Wednesday, up 7.3 percent to $55.14 at last check.
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