RE: Where are we going from here?No one would form a JV because WED was demanding too much for an unproven technology while wanting to hold onto everything. It is known that they were basically asking the JV partner to fund most of, if not all, the cost for a production facility while retaining exclusivity over the technology with the rights to form JV's with competitors. Would you sign to such an agreement? Obviously no. However, by putting Ifire up for sale shines a whole new light on the situation.
Let's see what we know;
The Chinese have made TDEL a technology for them to pursue in the name of national interest. They are obviously interested in Ifire's technology and need it to pursue the dream of sticking it to the Koreans, Taiwanese, and Japanese who are big on LCD.
Sanyo and DNP are both still collaborating with Ifire so must still be interested in the technology, although obviously not interested in forming a JV on WED terms.
The speculation part;
The Chinese would buy Ifire outright and then eventually move most of the development to China where it is cheaper while keeping a few of the key technical people around. This would be the more desperate sell situation, as there would be no upside for WED and it would be too risky for WED to maintain a position as the technology could just be passed along "for free" to related companies in China.
Sanyo would buy Ifire to keep it out of Chinese hands. Sanyo also needs desperately a home run technology to replace their CRT and compete with LCD. They could never risk loosing Ifire, especially when they have had the inside track for so long. I expect that ID would like to make a deal with Sanyo/DNP where WED retains a still significant interest in Ifire. Remember the news release said "they will actively look for a buyer for Ifire". It did not say they would divest Ifire, as would be usual for an outright sale.
I also expect that WED already had some expressions of interest in Ifire before they made the announcement. They then decided to hang an official for sale sign on the door, as they would not have needed to make an announcement if the intent was to only bargain with one or two entities. By making the announcement, ID opens the door to everyone so WED can get the best deal and cannot be accused of not looking for the best deal after. The market took the "for sale" announcement as a total Ifire failure when it fact it is likely only the next step for WED.
There is alot of possible outcomes. To be safe make Ifire's value zero in your WED valuation. This way you cannot be disappointed.