Hypercom Corp. (HYC)

All Comments on HYC

  • commenter
    numericalexa
    mple,com
    Apr 06 01:50 PM
    My Website
    Are Companies Smart to Reject Takeover Offers? [view article]
    Getty images also got an offer when it was really bottomming in January, just before the current offer, of about 1.5 billion. I don't know whether they have refused it, I think it did not go for other reasons. But really, that offer was so low that they should have refused it. Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:19 AM
    My Website
    General Discussion on HYC
    Is this a buy or a sell? Reply
  • commenter
    maguro_01
    Mar 12 09:29 PM
    Are Companies Smart to Reject Takeover Offers? [view article]
    Suggesting that the Reily attempted takeover of Transmeta is offering a premium is not correct. Transmeta recently won a $250 million settlement from Intel in a patent suit. $150 million was payable immediately and $20 million/yr for the remainder. Reily proposes to buy Transmeta with its cash on hand and shut it down immediately. The offer values the next payments near zero, the patents that got $250 million out of Intel at zero, the business from Longrun2 royalties now started (from NEC) at zero, and Transmeta's large loss carry forward from its failed processor business at zero.

    At first glance Reilly's offer is just a pirate raid. Transmeta management did fail to have a plan to spend most of it immediately. A small company can no more have that much cash than you or I could walk through a tough section of a city with a tray of $100 bills. So that way Reilly gets a payday but no one else does.

    One even less appetizing possibility remains. Reilly said they represented "affiliated companies". Who might that be? Is it possible that the Intel settlement is to be undone and it all ends up at Intel for much less than the total amount of the award or a normal purchase price? Transmeta's Longrun2 patents, now licensed by Intel as part of the settlement, may be necessary for the 32nm generation of integrated circuits. In fact Intel recently hired Ditzel, one of Transmeta's founders. If this complete conjecture were true then small company patents would be nearly worthless if a big company covets them. Transmeta is not a patent troll, but the actual patenting operating company. Such a series of events would be well beyond playing hardball.
     Reply
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