e.Digital

It has been suggested that the parties might exchange patents and go at that. In my judgement this is not a possibility for two reasons. First, exactly what Edig will do with the new patents? Not enough money for developing and selling new products that will use these patents. Second why DM would go for such an arrangement? It does not compesate them for all the expenses that they have already incurred.

In my judgement, I tend to think that a buy out is in the offing. The reasons have been argued already but it might be useful to repeat them here. If we assume even a 50 mil agreement Sammy will get the right of using the patents. But for 200 mil more they own the patents with all the implications that ownership entails. If you want to increase the latter number it's ok. I think that an friendly offer in the neighborhood of $.80 - $1.25 per share might very well do it. Finally, Sammy has adequate resources to defend its patents against anybody.