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Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (2613)	11/2/2022 9:26:20 PM
From: Elroy	Respond to of 2978

I don't think that there is a timeline where MXL can walk away from the SIMO acquisition, but I'm not 100% sure about that. There is wording in the deal that if Chinese regulators do not approve the MXL-SIMO acquisition then MXL must pay SIMO $160 million. But I don't think there is the option for MXL to just give up on the deal if they choose. SIMO's results are actually pretty good considering the weak status of cell phones and PCs. QCOM is guiding next quarter's sales to be down about 10%. SIMO is guiding next quarter's sale to be flat. SIMO is doing great, relative to the cell phone and PC markets. SIMO will have record revenues in 2022. I don't know how "timeliness" of approval factors into the MXL-SIMO deal. It would be good to know (what if China never makes a decision, what happens then?). I still sorta think the MXL-SIMO deal will go through. The Chinese regulators are supposed to look at anti-trust, and there is no anti-trust issue in their merger. So China could only refuse the deal for geopolitical reasons, and I wonder if they want to make a geopolitical battle over low tech little SIMO? I doubt it.