Filing Flows › InterDigital (IDCC) › Takeover & LBO
Is InterDigital (IDCC) a takeover target?
A leveraged buyout at today's price plus 30% ($415.09 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 2.9% of companies with its figures were bought within a year (0.57× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $415.09 | today's $319.30 plus 30% |
| × shares | 34.2 million | |
| = Equity value | $14.2B | |
| + Debt refinanced | $389M | |
| − Cash | $1.1B | |
| = Enterprise value | $13.5B | 30.1× EBITDA of $447M |
| Fees | $270M | 2% of the price |
| New debt | $2.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $11.3B | 82% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $793M | $434M | $188M | $212M | $2.2B |
| Year 2 | $781M | $427M | $172M | $220M | $2.0B |
| Year 3 | $781M | $427M | $155M | $234M | $1.8B |
| Year 4 | $793M | $434M | $137M | $252M | $1.5B |
| Year 5 | $816M | $447M | $118M | $278M | $1.3B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 22.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $10.2B | |
| − Debt left | $1.3B | |
| = Buyer's equity | $8.9B | |
| Money multiple | 0.79× | on $11.3B put in |
| Buyer's yearly return (IRR) | −4.6% |
Price against return
What the buyer makes at other premiums over today's $319.30.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $351.23 | −0.3% |
| 20% | $383.16 | −2.6% |
| 30% | $415.09 | −4.6% |
| 40% | $447.02 | −6.4% |
| 50% | $478.95 | −8.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $817M | |
| EBITDA, last 12 months | $447M | 54.7% of revenue |
| Depreciation and amortization | $78.5M | |
| Capital spending | $3.4M | |
| Debt | $389M | |
| Cash | $1.1B | |
| Share price | $319.30 | on Oct 16, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -3.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 18% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, InterDigital would cost about $366.88 a share, $12.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 9.5% | $349.63 | $12.0B |
| Median | 14.9% | $366.88 | $12.6B |
| High end (a quarter paid more) | 33.6% | $426.58 | $14.6B |
The odds, from history
Historically 2.9% of companies with its figures were bought within a year (0.57× the average). Its figures put it in decile 2 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
InterDigital's latest quarter
InterDigital, Q3 2026: revenue $193M (+18% year over year), operating margin 51.4%, net earnings $80.2M, operating cash flow $150M. The chart follows the revenue to costs, profit and cash.
Questions
Is InterDigital being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy InterDigital?
A leveraged buyout at today's price plus 30% ($415.09 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of InterDigital cost?
Takeovers in its sector paid a median premium of 14.9% over the share price before the deal (the middle half 9.5% to 33.6%), according to the 17 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, InterDigital would cost about $366.88 a share, $12.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.