According to sources close to Nikkei, the merger discussions between Western Digital and Kioxia has been terminated. Western Digital notified Kioxia about scrapping the possible transaction, citing the failure to obtain approval from SK Hynix, a significant shareholder of Kioxia, and disagreements over merger terms with Bain Capital, Kioxia's main shareholder. Western Digital and Kioxia, holding the fourth and second positions in the global NAND flash memory market, respectively, planned to join their NAND operations under one roof to create the world's largest maker of NAND memory and potentially enhance their competitive standing and profitability.

The merger was seen as a strategic move to rival Samsung's market dominance by leveraging the companies' combined resources and capabilities, and the plan was to happen as soon as the end of this month. However, the merger faced substantial opposition from SK Hynix, the world's third-largest NAND supplier with a 17.8% market share. Having invested more than $2.6 billion in a consortium led by Bain Capital that previously acquired Kioxia in 2018, SK Hynix expressed concerns that the proposed merger would adversely impact its market position and future collaboration opportunities with Kioxia. This opposition proved to be a pivotal obstacle, preventing the realization of the merger.

According to Kyodo News, Japanese chip manufacturer Kioxia and its U.S. counterpart Western Digital are reportedly on the verge of finalizing a merger agreement, aiming to create the world's largest producer of memory chips. The merger plan involves establishing a holding company to consolidate their operations for producing NAND flash memory chips, with the announcement reportedly coming this month. The merged entity is expected to be listed on the Nasdaq stock exchange in the United States. As the global semiconductor market contends with competitive pressures and fluctuating demand, the merger is seen as a strategic move to enhance the combined market position of both companies.

Western Digital shareholders are anticipated to hold a majority stake in the new entity, with Kioxia's shareholders, including Toshiba Corporation, owning the remaining stake. The move is poised to give the newly formed company a combined market share of 35.4 percent in NAND memory chips as of March, surpassing South Korea's Samsung, the current leader, with 34.3 percent. However, the merger's ultimate approval hinges on regulators' decisions, including those in China, as semiconductors have become increasingly integral to global economic security. Major Japanese banks, including MUFG Bank and the state-backed Development Bank of Japan, are contemplating loans of up to approximately 1.9 trillion yen (about $12.7 billion) to facilitate the merger.

The drawn out merger talks between Kioxia and Western Digital's memory and NAND flash manufacturing businesses appears to have hit an unexpected bump on the road, in the shape of SK Hynix according to the Nikkei. As it happens, SK Hynix holds an indirect stake in Kioxia and as such, they need to approve the merger for it to be able to happen. Today, SK Hynix is the second biggest manufacturer of NAND flash, somewhat behind Samsung, but if the Kioxia WD merger were to take place, SK Hynix would be pushed into a third place in the market, which wouldn't benefit the company.

As such, SK Hynix is trying to push for a rather odd option for Kioxia, where SK Hynix wants Japanese SoftBank—who owns among other things, Arm—to step in as a partner with Kioxia. However, what SK Hynix seems to have forgotten is that WD's memory chips are made in the same fab as Kioxia's and it's highly unlikely that WD would be keen on seeing this last minute proposal by SK Hynix play out. The Kioxia WD merger would result in a new company where Kioxia would own 63 percent and WD 37 percent, based on current assets. However, WD is meant to add further capital to the merger, so it can get a 50.1 percent stake in the final company for its shareholders, with Kioxia ending up with 49.9 percent.

Microsoft Corporation (Nasdaq: MSFT) ("Microsoft") and Activision Blizzard, Inc. (Nasdaq: ATVI) ("Activision Blizzard") today announced that, in connection with the previously announced merger of Activision Blizzard with and into a wholly owned subsidiary of Microsoft (the "Merger"), with Activision Blizzard surviving the Merger as a wholly owned subsidiary of Microsoft, Microsoft has commenced offers to Eligible Holders (as defined herein) to exchange (each an "Exchange Offer" and collectively, the "Exchange Offers") any and all outstanding notes issued by Activision Blizzard as set forth in the table below (the "Existing Activision Blizzard Notes") for up to $3,650,000,000 aggregate principal amount of new notes issued by Microsoft (the "New Microsoft Notes") and cash.

Concurrently with the Exchange Offers being made by Microsoft, Activision Blizzard is, upon Microsoft's request, soliciting consents from Eligible Holders (each, a "Consent Solicitation" and, collectively, the "Consent Solicitations") to adopt certain proposed amendments to each of the corresponding indentures governing the Existing Activision Blizzard Notes to eliminate certain of the covenants, restrictive provisions and events of default from such indentures (with respect to the corresponding indenture for such Existing Activision Blizzard Notes, the "Proposed Amendments"). Eligible Holders may deliver their consent to the Proposed Amendments only by tendering Existing Activision Blizzard Notes of the applicable series in the Exchange Offers and Consent Solicitations. Eligible Holders may not deliver a consent in a Consent Solicitation without tendering Existing Activision Blizzard Notes in the applicable Exchange Offer and Eligible Holders may not tender Existing Activision Blizzard Notes without also having been deemed to deliver a consent.

Silicon Motion Technology Corporation today disclosed additional details regarding MaxLinear's termination of its May 5, 2022 agreement to acquire the Company (the "Merger Agreement"). As previously disclosed, MaxLinear's July 26, 2023 notice of termination did not contain a factual basis for MaxLinear's claim that it was not obligated to close its acquisition of the Company because the Company's business had suffered a material adverse effect (as such term is defined under Delaware law (an "MAE")) and the Company had failed to operate its business in the ordinary course after the Merger Agreement was signed.

In the 15 months following the signing of the Merger Agreement, MaxLinear never once asserted, prior to sending its July 26, 2023 notice of termination, that there had been a material breach of the Merger Agreement, nor did it or its representatives ever mention an MAE or a breach of the ordinary course covenant.

Microsoft's proposed $69 billion takeover of Activision Blizzard got the "go ahead" from the vast majority of regulatory bodies around the world, but the UK's Competition and Markets Authority (CMA) ultimately chucked a spanner into the works—consequently the deal's signing off date was delayed into the autumn. The top brass at Microsoft and Acti-Blizz have worked on a revised set of terms (to address concerns raised earlier this year), and the outcome has been semi-positive. The competition watchdog appears to be satisfied, prior to making a concrete announcement: "While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues. The CMA is now consulting on the remedies before making a final decision."

Under the newly redrafted deal—submitted for approval last month—Microsoft has agreed to transfer the rights to stream Activision games from the cloud to French video games publisher—Ubisoft—for a 15 year long term. The CMA's freshly published press release provides an insight into future infrastructures: "Under that new deal, Microsoft will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft Entertainment SA (Ubisoft), before the deal is completed. The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player."

Insiders claim that a potential merger between Western Digital and Kioxia is closer to happening—following longer than anticipated negotiation between involved parties, including Bain Capital and Toshiba. Technicalities have prolonged proceedings—an August 2023 sign off date was expected—but Kioxia Holdings' lenders seem motivated to get everything over the finish line. According to a Bloomberg report, at least three Japanese banks are ready to submit a commitment letter (next month) for the refinancing of ¥2 trillion ($14 billion) in loans—anonymous sources suggest that Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are involved. These organizations hope to fund the merger with Western Digital's flash memory business.

Representatives for Western Digital, Kioxia, Bain Capital and (so far named) Japanese banks have declined to provide statements in response to the Bloomberg report. Allegedly, part of the loan will be used to pay special dividends to Kioxia's shareholders. A Reuters summary of said conditions reads: "Under the terms of the deal being negotiated, Western Digital will hold about 50.5% of the combined company with the remaining 49.5% held by Kioxia...Of the 2 trillion yen loan, 400 billion yen will likely be funded through loan commitments and the Development Bank of Japan will provide a loan of 300 billion yen. The rest will likely be equally split between the three megabanks." Bloomberg's insiders believe that Western Digital's hard drive business is not being offered up.

Silicon Motion Technology Corporation ("Silicon Motion" or the "Company") today issued a written notice to MaxLinear, Inc. ("MaxLinear"), terminating the Agreement and Plan of Merger between the parties dated as of May 5, 2022 (the "Merger Agreement"1).

Silicon Motion's position is that MaxLinear's Willful and Material Breaches (as such term is defined in the Merger Agreement) of the Merger Agreement prevented the merger from being completed by August 7, 2023 (the "Outside Date"). Silicon Motion reserves all of its contractual, legal, equitable, and other rights under the Merger Agreement and otherwise, including but not limited to the right to hold MaxLinear liable for substantial money damages, well in excess of the termination fee as provided in the Merger Agreement, suffered by Silicon Motion as a result of MaxLinear's Willful and Material Breaches of the Merger Agreement.

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.

In a surprise move, Maxlinear has cancelled its close to US$4 billion takeover of Silicon Motion, despite having received approval by China to finally acquire Silicon Motion. The two companies started their merger back in May of 2022, but over a year later, Maxlinear has announced that it has "exercised its contractual rights to terminate its May 5, 2022 merger agreement". The announcement saw a drop in Maxlinear's shares of about 12 percent and a 25 percent drop for Silicon Motion.

It's unclear as to why Maxlinear cancelled the deal, but the two companies don't appear to have clear synergies outside some storage products. That said, Maxlinear appears to blame Silicon Motion in a press release that the company issues. Among other things, Maxlinear states that "Silicon Motion has suffered a Material Adverse Effect that is continuing, Silicon Motion is in material breach of representations, warranties, covenants, and agreements in the Merger Agreement that give rise to the right of the Company to terminate". As to what this actually means, we'll most likely never find out, but as Maxlinear also points out, the merger was supposed to have been finished by the 23rd of May 2023, which means Maxlinear had the right to cancel the merger regardless.

Microsoft and Activision Blizzard have announced the postponement of their agreed merger deadline—from July 18 (yesterday) to mid-October. This will grant them more time to deal with a sticky issue presented by the UK's Competition and Markets Authority blocking of the proposed $75 billion acquisition—on the grounds of potential deleterious effects within the cloud gaming market. Xbox boss, Phil Spencer made a short statement on the matter earlier today: "Microsoft and Activision Blizzard have extended the merger agreement deadline to 10/18. We're optimistic about getting this done, and excited about bringing more games to more players everywhere."

Lulu Cheng Meservey, CCO and EVP Corporate Affairs at Activision Blizzard, stated: "The recent decision in the U.S. and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming. Given global regulatory approvals and the companies' confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18. We're confident in our next steps and that our deal will quickly close."

Logitech has announced the merging of its microphone and audio equipment brands - their G Gaming Twitter account posted about this decision yesterday, and directed customers to a question and answer session on the official subreddit: "Where do you get support? How will ASTRO, Blue and LFC integrate into Logitech G? Will there be new ASTRO products? Get your questions answered with our official FAQ." A brand manager has since confirmed (via a fan query) that the Blue brand is getting nixxed: "We will be keeping the Yeti brand and moving it under Logitech G. The Blue name will be used to describe our technologies." Logitech spent a cool $177 million when it acquired Blue Microphones back in mid-2018, so it is odd that the company has chosen to drop a very recognizable and popular brand name in the worlds of podcasting, streaming and audio recording.

News outlets have discovered that Blue has been removed from the brands section of Logitech's website, and the Bluemic.com domain now directs back to the parent company's main online presence(s). The Logitech G sub-page has been updated with listings of Yeti, Snowball and other microphone models. A brand manager also outlined ASTRO's future: "(it will) continue to live on as a premium console audio product series underneath the Logitech G brand. Stay tuned for more information regarding ASTRO including a launch that we think our community will be very excited about...We're (also) very excited about ASTRO as a product series under Logitech G."

Due to the current lack of demand for NAND flash, the merger talks between Kioxia and Western Digital have picked up pace once again. The two companies have been at it since 2021 and it was reported back in January that the two companies once again wanted to try and combine their NAND production business. According to Reuters, the two have been pushed into the meeting room once again, largely due to the two NAND giants wanting to cut costs in a market where demand for their products isn't what it once was.

Kioxia and Western Digital are the second and fourth largest manufacturers of NAND flash, although all the memory is made in Kioxia's facilities. A merger of the two would create a company that is said to be owned at 43 percent by Kioxia and 37 percent by Western Digital, with current shareholders of the two companies getting the remaining 20 percent. However, a potential merger isn't without hurdles, as it's likely to be scrutinised by both the US and the PRC due to potential antitrust issues, with the combined company owning a third of the global NAND flash market. Kioxia has even shelved plans for a public offering, due to the sluggish demand for NAND flash. Time will tell if the two can come to an agreement, but it doesn't look like the best of times for a merger either.

The United Kingdom Competition and Markets Authority (UK-CMA) on Wednesday blocked the proposed $68.7 billion merger of Microsoft and Activision-Blizzard. In its press-releasing announcing its final decision into an investigation on the question of how the merger will affect consumer-choice and innovation in the market, the CMA says that the merger would alter the future of cloud gaming, and lead to "reduced innovation and less choice for United Kingdom gamers over the years to come." Cloud gaming in this context would be games rendered on the cloud, and consumed on the edge by gamers. NVIDIA's GeForce NOW is one such service.

Microsoft Azure is one of the big-three cloud computing providers (besides AWS and Google Cloud), and the CMA fears that Microsoft's acquisition of Activision-Blizzard IP (besides its control over the Xbox and Windows PC ecosystems), would "strengthen that advantage giving it the ability to undermine new and innovative competitors." The CMA report continues: "Cloud gaming needs a free, competitive market to drive innovation and choice. That is best achieved by allowing the current competitive dynamics in cloud gaming to continue to do their job." Microsoft and Activision-Blizzard are unsurprisingly unhappy with the verdict.

NortonLifeLock Inc., a global leader in consumer Cyber Safety, received provisional approval from the U.K. Competition and Markets Authority ("CMA") for its acquisition of Avast plc. NortonLifeLock also released its results for the fiscal year 2023 first quarter, which ended July 1, 2022. "We are excited to start the process of bringing our two companies together now that the CMA has approved our merger with Avast," said Vincent Pilette, CEO of NortonLifeLock. "With this key milestone behind us, we are looking forward to driving innovation and taking Cyber Safety to the next level."

The merger is anticipated to close between mid-September to early-October. The timing is subject to change and is dependent upon the final CMA approval, mutually agreed upon operational considerations and customary closing requirements such as the U.K. court approval of the scheme.

The Federal Trade Commission today sued to block U.S. chip supplier Nvidia Corp.'s $40 billion acquisition of U.K. chip design provider Arm Ltd. Semiconductor chips power the computers and technologies that are essential to our modern economy and society. The proposed vertical deal would give one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips. The FTC's complaint alleges that the combined firm would have the means and incentive to stifle innovative next-generation technologies, including those used to run datacenters and driver-assistance systems in cars.

"The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies," said FTC Bureau of Competition Director Holly Vedova. "Tomorrow's technologies depend on preserving today's competitive, cutting-edge chip markets. This proposed deal would distort Arm's incentives in chip markets and allow the combined firm to unfairly undermine Nvidia's rivals. The FTC's lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations."

KIOXIA and Western Digital are in talks to merge, creating a behemoth in the data storage industry. This would be KIOXIA's first big corporate move after being spun off from Toshiba Corporation as its flash memory business. The combination—if it goes through—would essentially see the merger of three distinct brands—KIOXIA, Western Digital, and SanDisk; with KIOXIA and SanDisk bringing together market-leading expertise in flash memory; and Western Digital bringing in "warm" and cold storage solutions, such as hard drives. 5G is expected to create an explosion in data, and the merged trans-Pacific entity could more effectively address it. A deal worth $20 billion could be struck by mid-September, if the merger talks succeed. KIOXIA is declining to comment on the story, as it prepares its IPO that includes shares from Toshiba and Bain Capital. Shares of Western Digital, meanwhile, are trading up.

NortonLifeLock , a global leader in consumer Cyber Safety, and Avast, a global leader in digital security and privacy, are pleased to announce that they have reached agreement on the terms of a recommended merger of Avast with NortonLifeLock, in the form of a recommended offer by NortonLifeLock, for the entire issued and to be issued ordinary share capital of Avast.

Under the terms of the merger Avast shareholders will be entitled to receive a combination of cash consideration and newly issued shares in NortonLifeLock with alternative consideration elections available. Based on NortonLifeLock's closing share price of USD 27.20 on July 13, 2021 (being the last trading day for NortonLifeLock shares before market speculation began in relation to the merger on July 14, 2021, resulting in the commencement of the offer period), the merger values Avast's entire issued and to be issued ordinary share capital between approximately USD 8.1B and USD 8.6B, depending on Avast shareholders' elections.

The United States Government is closely examining national security implications of a potential Broadcom-Qualcomm merger. Broadcom is a Singapore-based company, while Qualcomm is American. An empowered national security panel called the Committee on Foreign Investment in the United States (CFIUS), which has the legal power to stop mergers between American and foreign companies, and acquisitions of American companies by foreign entities; is said to be examining specifics of Qualcomm's high-technology and intellectual property falling into the hands of Broadcom, as the two companies close in on a crucial Qualcomm board meet scheduled for March, in which Broadcom has exercised its shareholding to plant 6 favorable board members among the 11-member Qualcomm board, which all but guarantees a vote in favor of the merger - a classic hostile takeover.

"Not so fast," believes Senator John Cornyn, the No. 2 Republican in the US Senate, who urged Treasury Secretary Steven Mnuchin to have the CFIUS examine the Broadcom-Qualcomm deal. In its unprecedented pre-deal discussions within the otherwise opaque committee, a consensus emerged that Broadcom's decision to relocate its headquarters to the US was insufficient to circumvent a CFIUS review. "I urge CFIUS to promptly review Broadcom's proposed acquisition of control of Qualcomm's board, and to act prior to the March 6 Qualcomm meeting to address any national security concerns that may be identified," Senator Cornyn wrote to Secretary Mnuchin. It looks like Broadcom's decision to tamper with Qualcomm's board is set to spectacularly backfire.

Dell today announced that, based on a preliminary vote tally from the special meeting of stockholders, Dell stockholders have approved the proposal in which Michael Dell, Dell's Founder, Chairman and CEO, will acquire Dell in partnership with global technology investment firm Silver Lake Partners.

In connection with the transaction, Dell stockholders will receive $13.75 in cash for each share of Dell common stock they hold, plus payment of a special cash dividend of $0.13 per share to stockholders of record as of a date prior to the effective time of the merger, for total consideration of $13.88 per share in cash. The agreement also guarantees the regular quarterly dividend of $0.08 per share for the fiscal third quarter would be paid to holders of record as of a date prior to closing. The total transaction is valued at approximately $24.9 billion.

Integrated Device Technology, Inc. (IDT), the Analog and Digital Company delivering essential mixed-signal semiconductor solutions today announced the expiration of the "go-shop" period pursuant to the terms of the previously announced merger agreement with PLX Technology, Inc. ("PLX"), dated April 30, 2012, which contemplates the exchange offer for all outstanding shares of PLX common stock, followed by a second step merger.

Pursuant to the "go-shop" provisions of the merger agreement, PLX and its representatives were permitted to actively solicit alternative acquisition proposals for a period of 30 calendar days, which expired at 11:59 p.m. California time on May 30, 2012, and to continue negotiations with certain qualifying "excluded parties" for up to an additional 15 days thereafter. On May 31, 2012, PLX confirmed that it did not receive any superior acquisition proposals during the "go shop" period and that no qualifying "excluded party" would be permitted to engage in any subsequent negotiations.

HP today announced that John Schultz has been promoted to the position of executive vice president and general counsel, effective immediately. Schultz, who joined HP in 2008, will be a member of HP's executive council and report to Meg Whitman, president and chief executive officer, HP.

As general counsel, Schultz is responsible globally for all legal and compliance functions. His previous role was vice president and deputy general counsel in charge of litigation.

Idaho-based Micron Technology is reportedly going to spend at least US $500 million in purchasing a stake in its Japanese rival, Elpida, according to a Economic Daily News report. This development closely follows reports of an equity tie-up between the two companies, with a decision emerging in February.

Taiwanese Nanya Technology and Inotera Memories stated in recent reports that DRAM makers should consider uniting their operations as such moves could contribute to the industry's sustainable development. Elpida refused to comment on this latest report. What does this mean to the consumer? The year 2011 has been a bloodbath for DRAM makers as overproduction led to drastic drops in PC memory prices, and a watershed for PC consumers as a result. These latest developments could contribute to the inevitable rebound of DRAM prices in 2012.

According to a Japanese newspaper (Yomiuri), the country's last DRAM manufacturer, Elpida Memory, is fishing for a merger with two other memory companies, US-based Micron Technology and Taiwan's own Nanya Technology.

If it will go through, the merger would create a company better positioned in the memory market, and more capable of fighting South Korean companies like Samsung Electronics and Hynix Semiconductor.

While the company didn't comment on the merger talks, Elpida's President Yukio Sakamoto is said to have made a trip to the US last week to further negotiations with Micron. It's still uncertain how advanced are the talks but a deal could be signed this year.