Shares of Silicon Motion Technology (NASDAQ:SIMO) shot up by a staggering 76% at the time of writing in reaction to the Chinese antitrust regulator, the State Administration for Market Regulation, giving conditional approval for the firm’s $3.8B acquisition by Maxlinear (NASDAQ:MXL). On the other side of this coin, Maxlinear, headquartered in Carlsbad, California, saw its shares plunge by 20% following the same regulatory decision.
The deal, which dates back to May 2022, will see Maxlinear scoop up Silicon Motion for $114.34 per share in a mix of cash and stock. This strategic move is all about the addition of Silicon Motion’s NAND flash controller technology and their established customer relationships, augmenting MaxLinear’s already strong presence in the Broadband, Connectivity, and Infrastructure markets.
A look at the past five trading days for SIMO stock highlights the level of impact today’s news had on it. Indeed, investors are now up over 66% during this timeframe.
