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Investing Books / Gorilla Game, The


Subject:  Re: Two Subjects Date:  6/20/2000  9:33 PM
Author:  snsraymond Number:  3051 of 8782

"The important agreement reminds me of Qualcomm's agreement with Ericsson. Just as Q's agreement didn't make it a Gorilla, neither does Rambus's agreement. The only thing that makes a gorilla is a tornado."

I concur that an agreement does not create a gorilla. However, the agreement is a catalyst for the tornado. It signifies 1) the acceptance of the technology by a manufacturer (willing to manufacture it) and 2) the willingness to pay royalties, thus providing revenue to Rambus (or QCOM, whichever the case may be).

The key:

All of this is moot unless the tornado is fueled by consumer demand.


ps. Rambus' royalties will not be derived solely from RDRAM. Let's not forget about the communications markets.
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