Originally Posted by cloudgazer
So I stand by my point, if you really think that Apple was 100% certain to walk away with the patents, then you are crazy and have no understanding of auctions. Because as Apple themselves would be aware, at a certain price that would constitute losing.
Let me make this simple for you since you refuse to read my earlier comment:
* Apple reads Google's financials. Microsoft, Rim, Ericsson and Sony do the same.
* They understand the maximum limit that Google can hit financially (and it's not their cash position). We'll call this figure X. Apple can hit figure X by itself but Rockstar is a consortium so they can bid above that number.
* Apple, RIM and Ericsson are phone manufacturers... these patents are important to their businesses.
* Apple and Microsoft each have a tremendous cash position.
* The original Rockstar team, Google, Intel and Apple keep bidding up the price. Nobody gives a shit about Google's crazy numbers. Apple and Rockstar just keep the bidding alive.
* Intel is almost tapped out and Google starts nearing figure X as the bidding continues... so they join forces. Apple doesn't care... it needs the patents.
* Ericsson sees that Rockstar is starting to tap out because Microsoft's interest as a non phone manufacturer is starting to wane. Ericsson talks to apple and brings Apple into Rockstar. Apple laughs... because now they can have the patents for much less than they were willing to pay.
* Googles shits pants and drops out because figure X is only a few bucks away and they don't want to get caught bidding over their safe figure X knowing full well that Apple plus Rockstar will bury them. Crazy ass numerical bids don't count for shit when all you have to do is add a few more million to the stupid numbers.
* Microsoft and Apple didn't even break a sweat... they laugh as they write their cheques. RIM breathes a sigh of relief and thanks Apple for joining their team.