InterDigital's value drops, as potential buyers bid low - Mobile World Live

InterDigital’s value drops, as potential buyers bid low

27 SEP 2011

Mobile technology patent holding company InterDigital saw its stock price fall, after DealReporter suggested that the company has received bids for its portfolio which are lower than its current market capitalisation.

Apparently, the company has received bids in the US$1 billion to US$2 billion range, while its market capitalisation is in excess of US$2.2 billion.

InterDigital said earlier this year that it had begun a process to “explore and evaluate potential strategic alternatives for the company,” as the value of mobile patents soared following the sale of Nortel’s portfolio for US$4.5 billion.

At the time, Google was seen as the potential big bidder, having previously failed to secure the Nortel assets, and needing to strengthen its hand in order to protect its Android platform. However, with this company now set to acquire Motorola Mobility, its appetite for another transaction is believed to be diminished.

According to Bloomberg, bidders for InterDigital include a “large Asian mobile device company.” It was previously suggested that Samsung is interested, while other names suggested include Intel, Ericsson, HTC, Microsoft, Apple, Nokia and Qualcomm.

In a statement, the patent company said that it “continues to thoroughly explore and evaluate a broad range of potential strategic alternatives for the company, which may include a sale, to a single buyer or consortium of buyers, of the company or select assets of the company.” It also acknowledged that “there can be no assurance that this strategic review process will result in a transaction.”

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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