Why Silicon Motion Tech Stock Is Rocketing Higher

Silicon Motion Technology Corporation SIMO shares are rocketing higher Wednesday following a report of Chinese regulatory approval of the company's merger with MaxLinear, Inc. MXL.

The Details:

The previously announced agreement stated that MaxLinear will acquire Silicon Motion in a cash and stock transaction that values the combined company at $8 billion. In the merger, each American Depositary Share (ADS) of Silicon Motion will receive $93.54 in cash and 0.388 shares of MaxLinear common stock, for total per ADS consideration of $114.34.

Silicon Motion Technology will release its second quarter 2023 financial results after the market closes on Thursday. The company stated that it will not be conducting its customary earnings conference call due to restrictions associated with the transaction with MaxLinear.

Related News: What's Going On With Nikola Stock Today?

SIMO Price Action: According to data from Benzinga Pro, SIMO shares are trading 79% higher at $93.44 at the time of publication.

Image: naor4040 from Pixabay