Silicon Motion Inc. (SIMO) Message Board

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Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 88.87

+1.5%

Nov 28 12:59 PM EST

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To: Sam who wrote (2698)	8/8/2023 8:43:46 AM
From: Elroy	Read Replies (1) of 2976

my guess is that they are huffing and bluffing and hoping SIMO will go away. Why would SIMO go away when they may have the ability to extract $1.5 billion damages penalty from MXL? I have a hard time understanding MXL's actions. I understand that they agreed to a deal price which today seems much to high, they entered into a contract at that price. Breaching the contract opens them up to massive legal penalties. Huge penalties. If someone agreed to buy your home at the peak of the market, with an agreement to close a year later, and then a year later the home value had declined by 50%, you wouldn't just let them out of the deal. Unless MXL can prove some of these mysterious as of yet unexplained allegations, I see them at risk of bankruptcy. Why the market doesn't agree (MXL has a market cap near $1.8 billion) confuses me. The deal value was about $103 per SIMO share. Damages are obvious, $103 - SIMO's share price without the deal. It's a big number.

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