RE:RE:Wilan?6x normalized EBIDTA, maybe 8x on a sale, plus a carve out for Apple and maybe Google/Amazon/Microsoft.
The trick will be securing agreement on the base EBIDTA number.
The five year average is $30M. Rolling 12 months is ~$0.00. Management has steadfastly indicated that the $30M number is representative of the normal run of the business from licensing; Gillberry inferred that on the reorg conference call as well. Covid has had more of an impact than was initially thought.
Let's say that the Google/Amazon/Microsoft litigations are included in a Wilan sale and only Apple is a carved out, if not settled prior to a deal. Management sounded like it could support an EBITDA in line with the 5-year average, based on Gillberry's comments and Q&A on the call. Using the 6x - 8X mutiple, Wilan, ex Apple, would be worth between $120M and $180M. However, I think it is reasonable for QTRH to expect any acquirer to want to discount the EBITDA from a 5-year average baseline.
An Apple home run would be north of $300M and should eb viewed separately.