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

To: Elroy who wrote (2695)	8/7/2023 7:35:57 PM
From: Elroy	Respond to of 2977

Hmmmm. Who has any clue what is the way that this works out well for MXL? I can't for the life of me understand their thinking. They could (it seems to me) easily lose $1 billion to $1.6 billion in a settlement, and not own SIMO at the end. How is that preferable to owning SIMO but having $3 billion in 9% debt and $600 million cash on the balance sheet? Why isn't MXL trading closer to a company at risk of bankruptcy? It's as if their investors are shaking off the MXL precarious legal position like it's nothing. Why is it nothing? Everything I understand indicates MXL illegally breached the contractual agreement, and therefore will suffer the penalties in the contract, which include payment of damages to SIMO for said breach. Damages are easily $1.0 to $1.6 billion, with a bias to the high end.