Quarterhill Inc T.QTRH

Wilan?

[Tcad123]

Does anyone have a clue,guess on what Wilan is worth? 100million would be nice...

[mrmoribund]

Good question? I've been thinking about that myself. The short answer is that it's worth whatever someone is willing to pay for it. But that's not really very helpful. I'd think the first step would be to add up all the best-scenario amounts that they're seeking in actions already initiated and then a probability of success would be attached to each one. They'd also be

[cabbieJBJ]

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

[astutein]

on third quarter results reported  Nov10 QTRH reported cash and equivalent of 36 million which  I believe relates to Wilan as in past. Any sale of Wilan would probably not include cash which would probably be taken out prior to sale. My point is that we have approx 35 million cash  plus the reported sale of Wilan?????. .

[mrmoribund]

Cabbie, from the way you describe the situation, really any of the ongoing cases could, in theory, be "carved out." It could play out like a kind of IP buffet. It makes sense that Quarterhill would keep the Apple disputes because they're so far along but if someone wanted to take over the action and pay, say, 80% of the "home run" value, then one could imagine Quarterhill

[astutein]

Mrmoribund- Your conclusion is correct.   Pretty darned complicated. Besides Apple, Google, Amazon, Microsoft Wilan has several other cases which could be mega. Collabo Innovations INc. vs AMD  (Advanced MicromDevices ) filed Sept16 2019 Innovative Memory vs Micron 204 Patents in Litigation against 52  Litigants in Total per RPX  

[cabbieJBJ]

The Wilan sub divestiture is only as complicated as one wants to make it.  I think it is relatively simple. My net conclusion is that the IP will not be divested piecemeal.  Here's why I think that there are at most two transactions. Basket #1 - Partnership Patents Most Wilan held patents are the result of partnerships.  Wilan owns very few patents.  In effect

[mrmoribund]

Well, Cabbie, sort of. I'd think that what makes it simple vs. complicated is the amount bidders are willing to pay. Say Quarterhill has in mind a price of X. If somebody offers X (or even more) then there's your deal. Simple. You don't need to concern yourself with how the bidder is valuing this or that action or patent. But suppose the highest bid is 78% of X. Or maybe there are

[cabbieJBJ]

KISS me, I'm a frog.

[mrmoribund]

No need Cabbie. You're already my prince.

[wilander]

careful. astutein will fight you for him. ;)

[cabbieJBJ]

decoder rings, $10 each. 2 for $20.

[ChiChi3]

From my perspective, there's a few ways to look at the value of Wi-Lan.  First, the EBITDA multiple that Cabbie aludes to would be the best place to start BUT, I think a $30 million value is underplaying it substantiially.  Any EBITDA calc has to take into consideration the Apple settlement.  Assuming it's conservative $150 million, let's say we get $100 million EBITDA

[pullsea]

well said. Thanks. QTRH is valued at $300 million plus already. So $400mm is not much far to go