Sign up for a free trial to IAM magazine including full archive access by clicking on the button below
You need to have cookies enabled in your browser to permanently hide this pop up.
Defensive patent aggregator RPX Corp has stated that its IPO, which took place today, raised approximately $159.6 million, with shares trading at $19 a pop. This is higher than the original $16 to $18 forecast, and must mean the firm is valued close to, or even over, $1 billion. That is an extraordinary valuation for a company that has yet to have its third birthday and which has generated "just" $100 million since its inception. How much leverage does this give the firm's subscribers I wonder? Could RPX afford to allow any of them to walk away by refusing a request for a discount on subscription fees?
You can follow RPX share price performance here. As of 5.45 pm UK time (12.45 EST), shares were trading at $23.65, up over 20% on the day. As I say, extraordinary. I cannot do the maths, but I wonder whether RPX is now notionally more valuable than Acacia, the NASDAQ-quoted NPE. Its market cap is currently $1.45 billion. That's up from $90 million two and a half years ago. Is it just me, or is anyone else seeing bubbles when they close their eyes?
Licensing, Patents, IP business
"Is it just me, or is anyone else seeing bubbles when they close their eyes?"
Funny, but I am not so sure investors exuberance is all that irrational. RPX is providing a service that tech companies want in a new market with very few if any direct competitors. It'll be interesting to watch this company's performance over the long term. More on my take here: http://bit.ly/jorgemtorres-on-RPX.Jorge Torres, Silas Capital on 05 May 2011 @ 22:30