Silicon Motion Wants to Merge with MaxLinear, Ready to Fight Termination in Court

[btarunr]

Silicon Motion Technology Corporation (NASDAQGS: SIMO) ("Silicon Motion") on August 7 issued a written notice to MaxLinear, Inc. (NASDAQGS: MXL) ("MaxLinear"), in which Silicon Motion categorically rejected MaxLinear's purported termination of the Merger Agreement, and the assertions made by MaxLinear, in its letter of July 26, 2023. Silicon Motion will vigorously pursue its remedies, and reserves all rights under the Agreement and otherwise, including but not limited to the right to hold MaxLinear liable for substantial damages.

Silicon Motion is the global leader in supplying NAND flash controllers for solid state storage devices. Silicon Motion supplies more SSD controllers than any other company in the world for servers, PCs and other client devices and is the leading merchant supplier of eMMC and UFS embedded storage controllers used in smartphones, IoT devices and other applications. Silicon Motion also supplies customized high-performance hyperscale data center and specialized industrial and automotive SSD solutions. Silicon Motion's customers include most of the NAND flash vendors, storage device module makers and leading OEMs.



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[lexluthermiester]

What a vapid and meaningless message. Pathetic. Silicon Motion seems to forget the rules of a merger, in that if it is not complete, either party can terminate the merger, unless they own a controlling or vested portion of the company, which isn't the case here.

 

[claes]

Uh not if you sign an agreement to merge with stipulations and potential damages if you don’t, which seems like they did

don’t know why this is news here, though

 

[lexluthermiester]

Uh not if you sign an agreement to merge with stipulations and potential damages if you don’t, which seems like they did

As the contracts have not been publicly disclosed, we can't know for sure. However, the fact that MaxLinear has motioned to back out means that either those clauses did not exist in a fully enforceable form, or a breach of terms has taken place and MaxLinear has opted to withdraw as a result. Silicon Motion likely failed to disclose something important and MaxLinear see's that as an act of bad faith, more than enough reason to terminate a merger. This is very common in merger attempts. Sometimes it's worked out, sometimes not. In this case, I see a court battle coming and Silicon Motion losing at penalty.

don’t know why this is news here, though

TECHPowerUp dot com. Any questions?

 

[claes]

As the contracts have not been publicly disclosed, we can't know for sure. However, the fact that MaxLinear has motioned to back out means that either those clauses did not exist in a fully enforceable form, or a breach of terms has taken place and MaxLinear has opted to withdraw as a result.

Duh

Silicon Motion likely failed to disclose something important and MaxLinear see's that as an act of bad faith, more than enough reason to terminate a merger. This is very common in merger attempts. Sometimes it's worked out, sometimes not. In this case, I see a court battle coming and Silicon Motion losing at penalty.

“I haven’t read the contract or even this press release let me adjudicate this case for you with my crystal ball”

TECHPowerUp dot com. Any questions?

Where’s the silver lake qualtrics acquisition that, you know, actually happened? Where’s the response MaxLinear released? IBM Apptio? Coverage of adobe-figma, which is probably more relevant to most users than any of these? No updates on Broadcom-VMware?