Quarterhill Inc T.QTRH

From BB Q3 Conference Call transcript

[cabbieJBJ]

And finally, a quick update on the IP patent portfolio sale. As we said before, there are two main interested parties. I'm pleased to say that tremendous progress has been made with both of them.

Catapult, who you know now has -- now has motivated financing partners lined up, and all parties are currently negotiating the final documents. The second party is a large PE firm that doesn't need external financing. They have completed their due diligence, and term sheets discussion are well advanced. We obviously will keep you updated as things progress.

From the Q&A
 

Todd Coupland -- CIBC World Markets -- Analyst

OK. That's -- that's helpful. And then, I had a question on, I guess, the movements on the balance sheet. So, I think in the past, the price for the patent licensing business is 600 million.

Does -- does that potentially change if the second party comes in? Like, if they get into the mix here, is the takeaway that you're going to get to 600 million or possibly higher? Or is it just they get there first and they can close the deal? What's -- what's the message on that?

John Chen -- Executive Chairman and Chief Executive Officer

Yeah, I'm sorry, I shouldn't comment on it. I know the questions and I understand. Of course, I have the answer, but it's unfair to both parties while we're negotiating in parallel. So, if you don't mind, just hold off with that until we made the announcement.

I'm expecting the announcement or the conclusion of this relatively soon.

Todd Coupland -- CIBC World Markets -- Analyst

I see. But -- but the takeaway is that the confidence level with the second party has gone up from the last time we talked about this, where financing was in question, to where it's -- the probability of getting that 600 million is -- has gone up materially with -- with that, and then the other the initial party getting financing. [Inaudible]

John Chen -- Executive Chairman and Chief Executive Officer

Yeah, the -- again, I can't go into the structure, but the initial party, the confidence level had had -- you're right, has dramatically gone up.

Todd Coupland -- CIBC World Markets -- Analyst

OK. Should we -- should we take away, given the delay and the two parties here, that the -- the structure that was announced before is -- is potentially open to some adjustments?

John Chen -- Executive Chairman and Chief Executive Officer

Very minor.

 

 

[takeomega3]

It is difficult to compare the valuations of Blackberry's intellectual property (IP) and Wilan's, but it is estimated that Blackberry's IP is likely worth around 4-6 times more than Wilan's. If Blackberry's IP is sold for a price of $600 million(USD), it can be assumed that Wilan is worth approximately $100-125 million. If there are any buyers willing to pay more than $100

[junglejames]

The take-away from BB's  and QTRH's efforts to date is that selling a portfolio of patents in a very tough slog, likely because forecasting future income streams is almost impossible.  In some ways it worse than buying lottery tickets! I will not be surprised if once again the patent business here at QTRH remains a component of the business, no matter how greatly I would like to

[Socrates1]

My thinking was same about 3-4 months ago... The extended (6 moths so far) period and reading into what Kid said ( I wish I could talk about the patent sale) they may have found a place for the "company" WILAN! BB patents are that just patents and you still need to build or have a business specializing in that patent law etc., so apples vs oranges when it comes to selling a business vs

[cabbieJBJ]

I couldn't agree more with Socrates's take on the comparision of the BB sale and the Wilan sale.  In fact, I still think there could be a connection between the two initiatives for certain buyers of the BB portfolios, especially with regard to Canadian content necessary to secure government approval. With record amonts of money currently funding patent assertion, it is