Real billion dollar ideas have trillion dollar market size, they are scalable, and leverage the drivers of growth to go viral or global.
In my last research on MicroVision (NASDAQ: MVIS), I introduced this 20 year old high-tech company that is at the cusp of acquisition by a major technology company. In the last few weeks, MVIS stock price has gone up by 15-fold [from 20 cents to over $3.30] on speculations. Now, after the Q3 earnings conference call it is trading in the $1.80 to $2.21 range giving new investors the opportunity to take position; for the future of $25 to $50 dollar trading range in the next six months or so... depending on the acquisition price of $3 billion or $7 billion... or some thing in between.
MVIS Stock Reacts To Breaking News
Breaking News
Now that we have accepted the idea of selling or merging the company, let’s review the dynamics of what it takes for the acquirer to “taking over a publicly traded company like MicroVision”…
1. MicroVision is soliciting a friendly takeover or merger of the company.
2. In a friendly takeover, the acquirer will purchase enough shares of the company─ and now MicroVision has 60 million shares in the treasury to get the ball rolling─ and then negotiate a friendly takeover. Acquirer will get a look at the company’s books as of that date and see what has changed since their last public filing with the SEC. Based on this information the acquirer will bid for the remaining outstanding shares from current shareholders. The current shareholders will be paid cash or stock in the acquiring company [presuming they too are public]. The acquiring company will typically pay a premium over the current stock price to buy the rest of the shares.
That is where we are...
Now MicroVision has 60 million shares in the treasury to get started by offering a minority position to the acquiring company.
Here's the short answer...
Each of the five LBS core technology verticals can spawn Trillion dollar markets of the future. Considering the diversity of its product line, built around the LBS core technology over the last 20 years, and protected by it's IP and 500 patents, each core vertical can spawn markets worth trillions, and be worth billions in an acquisition or a merger..
Six LBS Core Technology Vertical Engines Protected by IP, secret algorithms, and over 500 Patents...
- Engine three: is a retinal display engine for 3D display and hologram, for example, in Microsoft HoloLens 2. Microsoft paid $28 million dollars to develop this retinal display technology and pays licensing fees and royalties on every single component they make for this HoloLens 2 retinal display.
- Engine four: is a retinal display engine for Smart Glasses, for example, Apple Glasses or Microsoft Surface Glasses. A distinction must be made between holographic and non-holographic applications and devices. In other words, between devices like the HoloLens 2 and smart glasses. The former can make virtual objects float three-dimensionally in space. Smart glasses are used to display information, for example, text, video or for navigation.
Smart glasses based on MicroVision, Bosch or STM modules could reach a billion units if Apple, Samsung, Google or Microsoft, for example, were to bring them onto the market. If MicroVision only made $10 profit per module or received $10 license fees, profits of $100 million to $1 billion could be achieved - with 10 million to 100 million smart glasses sold per year.
- Engine six: is a long-range LiDAR engine for Autonomous Vehicles, a key component of what make the Autonomous Vehicles of the future safe and global.
MicroVision LiDAR Is Worth $2 Billion According To Valuation Of Velodyne And Luminar LiDAR By Ford, Baidu, Hyundai, Volvo
Why sell the company or merge with a deep pocket Tier 1 Technology partner...At low volumes, the cost of components that MicroVision sells to its Tier 1 partners is 5 to 10 times higher than what it is sold for in anticipation of large quantities... and loosing money on each component sold is what has shaped the company's past blunders loosing millions of dollars each quarter for the last 15 years.
Finally, to sell the company, or to sell one or all of its 5 core vertical engines that can spawn trillion dollar markets, is the right decision. Under the leadership and stewardship of a deep pocket Tier 1 technology partner from the FAMGA gang can truly realize the potential of MicroVision technology, and bring hundred of products to the market that will be sold in billion units per year.
In the last few weeks, MVIS stock price has gone up by 15-fold [from 20 cents to over $3.10] on speculations. Now it is trading in the $2.40 to $2.90 range giving new investors the opportunity to take position; for the future of $25 to $50 dollar trading range in the next six months or so... depending on the acquisition price of $3 billion or $7 billion.
What to Expect in sale or merger of MicroVision…
Over the last 3 decades, the FAMGA tech giants — Facebook, Amazon, Microsoft, Google, and Apple — have collectively made 770 acquisitions. Even amid the Covid-19 pandemic, some have continued to write checks, with Apple being the most active acquirer in 2020 to date among them.
This FAMGA group of acquirers has deep pockets. Some of their biggest checks have been written for high-profile companies such as career platform LinkedIn (acquired by Microsoft for $26.2B), chat app WhatsApp (Facebook for $22B), and video-sharing platform YouTube (Google for $1.7B).
TOP 5 ACQUISITIONS BY COMPANY
Below, we break down each of these companies’ top 10 acquisitions by value. Read more about these deals in the posts linked below.
Facebook
1. WhatsApp ($22B, 2014)
2. Oculus VR ($2B, 2014)
3. Instagram ($1B, 2012)
4. CTRL-labs ($1B, 2019)
5. LiveRail ($500M, 2014)
Amazon
1. Whole Foods ($13.7B, 2017)
2. Ring ($1.2B, 2018)
3. Zappos ($1.2B, 2009)
4. PillPack ($1B, 2018)
5. Twitch Interactive ($970M, 2014)
Microsoft
1. LinkedIn ($26.2B, 2016)
2. Skype ($8.5B, 2011)
3. GitHub ($7.5B, 2018)
4. Nokia’s Devices & Services Business ($7.2B, 2014)
5. aQuantive ($6.3B, 2007)
Google
1. Motorola Mobility ($12.5B, 2012)
2. Nest Labs ($3.2B, 2014)
3. DoubleClick ($3.1B, 2007)
4. Looker ($2.6B, 2019)
5. Fitbit ($2.1B, 2019)
6. YouTube ($1.7B, 2006)
Apple
1. Beats Electronics ($3B, 2014)
2. Intel — Smartphone Modem Business ($1B, 2019)
3. Dialog Semiconductor ($600M, 2018)
4. Anobit Technologies ($500M, 2011)
5. Texture ($485M, 2018)
6. Shazam ($400M, 2017)
7. NeXT Computer ($400M, 1996)
As an investor you know change equals opportunity… the bigger the change, the bigger the opportunity. The next few years are going to be either the most interesting, exciting, and lucrative years for you or you’re going to be left behind.
Change can mean big profits for investors getting in on the biggest changes early.
These two sectors -- artificial intelligence and TaaS -- are all seeing massive changes and we’re just starting to see their impact in the world.
Historically, when you just start to see these changes is the best time to buy.
And it’s why in a few years you’ll be kicking yourself for not jumping on them when you had the chance.
Some of the best, most direct, and highest-potential ways to jump on them are with Microsoft (MSFT), MicroVision (MVIS) and Tesla (TSLA).
Best regards,