Silicon Motion Inc. (SIMO) Message Board

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Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 89.11

+0.3%

9:58 AM EST

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From: Elroy	8/9/2023 6:29:37 PM
	of 2977

The MXL CFO did a Needham video chat today just before market end. He said about SIMO that they have not explained the Material Adverse Effect. He didn't mention any of the other three reasons for terminating the merger, so perhaps the MAE is the big one. He said they had lots of intelligent people deliberating over whether to take the actions they took, and the board was heavily involved, and these smart people eventually concluded MXL should do what they did. Hmmm, passing the buck? Who made the decision? He said Singapore arbitration is slower than Delaware arbitration, and Singapore usually takes 12-18 months. It's up to SIMO to initiate arbitration, and he expects SIMO will do that. Unlike Delaware or other arbitration areas, Singapore arbitration is 100% confidential. So it sounds like unless there is a revised deal, we get zero news until H2 2024 when some press release says the settlement or arbitration decision. Or maybe we get a press release that SIMO has filed a Singapore arbitration case (which perhaps has not yet happened?), and then zero news or details until the decision. I wish the sell side analyst had asked the CFO "If you lose badly in Singapore arbitration, could damages potentially be in the $billions? What do you think is the worst case result if you lose?" and just see how the MXL CFO responds.

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