InterDigital's Shares Got Crushed: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

Althoughwedon'tbelieveintimingthemarketorpanickingovermarketmovements,wedoliketokeepaneyeonbigchanges--justincasethey'rematerialtoourinvestingthesis.

What: Shares of technology license wranglerInterDigital (NAS: IDCC) lost their license to thrill today, falling as much as 23.8% on heavy volume.

Sowhat: The company put itself up for sale a few weeks ago, and the first round of bidding has closed. According to dealReporter, the first round of offers ranged from $1 billion to $2 billion, far below the $2.6 billion market cap that InterDigital commanded Friday or the recent high-water mark north of $3.4 billion.

Nowwhat:The red-hot market for patent assets is cooling down quicker than InterDigital and many of its peers had hoped. Shares of wireless patent hopeful VirnetX (ASE: VHC) dropped as much as 7% without any news of its own while memory-tech specialist Rambus (NAS: RMBS) remains nearly flat. It looks like the big boys of tech already got their fill of high-tech patent claims, reducing hopes for big buyout paydays across this burgeoning little industry.

InterestedinmoreinfoonInterDigital?Addittoyourwatchlistbyclicking here.

At the time this article was published Fool contributor AndersBylundholds no position in any of the companies discussed here. Motley Fool newsletter services have recommended buying shares of InterDigital. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that consideringadiverserangeofinsights makes us better investors. The Motley Fool is investorswritingforinvestors.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners