Silicon Motion Inc. (SIMO) Message Board

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Technology Stocks : Silicon Motion Inc. (SIMO)

SIMO 97.88

-0.2%

Nov 3 3:59 PM EST

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franklin1

Lance Bredvold

To: franklin1 who wrote (2844)	4/20/2025 6:16:24 PM
From: Elroy	2 Recommendations of 2966

SIMO's stock was about $70 when MXL offered to buy it for $93 cash per share + $12 in MXL stock (about that). So they approved the deal because it was a nice sales price. Also, this deal was announced at the tail end of the Covid supply chain panic buying, so MXL paid up at the very peak of the semi market. It was a great time to sell, and especially for mostly cash. Why sell the new building? I don't really know, but they say they like to be "asset lite", and a $130m worth of office building isn't perhaps the best use of their cash. And maybe they think they can make money building a new office building and then selling it to a REIT or something? Depends on the sales price, I guess. That was the story, but why they prefer to have the cash than the building I don't really know. Me, I'd prefer the cash as well. To my knowledge there is no plan to move from Taiwan or Hong Kong. That's where all the staff live (Taiwan), it's not that easy to move an entire company of employees to a different country.

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