Why Silicon Motion Tech Shares Are Rising Today - MaxLinear (NASDAQ:MXL), Silicon Motion Technology (NASDAQ:SIMO)

MaxLinear, Inc MXL has agreed to acquire fellow chipmaker Silicon Motion Technology Corporation SIMO for $114.34 per ADS in cash and stock.
The price represents a 48% premium to the undisturbed market value as of April 22, 2022, in cash and stock transaction, valuing Silicon Motion at $3.8 billion.
Silicon Motion makes NAND flash controllers for solid-state storage devices. It also supplies data centers and specialized industrial and automotive solid-state drives. The company reported a net income of $60.6 million for the December 31 quarter, up 9.4% sequentially.
Taiwan-based Media Tek Inc MDTKF was also interested in bidding for Silicon Motion, Bloomberg reports.
Silicon Motion has been working with advisers and holding talks with potential suitors amid takeover interest.
Price Action: SIMO shares traded higher by 19.60% at $97.15 in the premarket on the last check Thursday.