Overture (Yahoo) VS FindWhat – Mistrial
Huge news for the beaten down FWHT stock, which was recently down to 4.07 from it’s 52 week high of 23.94, gained about 10% on the day.
“A judge declared a mistrial in a patent infringement lawsuit between Yahoo Inc. and FindWhat.com Inc. after a jury failed to reach a decision on all of the issues in the case, FindWhat.com said on Thursday.”
In a note to clients on Wednesday, RBC Capital Markets analyst Jordan Rohan said the most likely outcome of the case would be a modest out-of-court settlement. He estimated that FindWhat could settle the case for around $7 million to $8 million.
Rohan said some investors had worried that a ruling against FindWhat in the case could wipe out the majority of the company’s $50 million cash balance.
Most of the second tier search stocks are fading into irrelevance. Maybe this will help FWHT hang on a little longer. Also noted eariler today:
FindWhat.com noted the judge has yet to rule on the issue of whether the patent is unenforceable because of inequitable conduct committed by Overture. A hearing on the inequitable conduct issue and other motions that could impact the ultimate outcome of the case is currently scheduled for June 24, 2005.