I think the biggest issue is that the deal was no longer a good one. By the time they walked, SIMO was down 20% from the pre-announcement price, and MXL was down 45%. Right now, MXL's market cap is $1.7B, and they needed $3B just to cover the cash part of the payment.
just replied to your comment on leverage, and as the cycle turned here this increasingly looked like the downside of that: a deal that had the potential to absolutely wreck MXL if the cycle didn't turn. by last summer, it still hadn't, and for MXL is still hasn't (though SIMO is showing some green shoots, pretty good Q4 for them while MaxLinear's wa snot)
Thanks for the article; why do you think MXL walked?
I think the biggest issue is that the deal was no longer a good one. By the time they walked, SIMO was down 20% from the pre-announcement price, and MXL was down 45%. Right now, MXL's market cap is $1.7B, and they needed $3B just to cover the cash part of the payment.
just replied to your comment on leverage, and as the cycle turned here this increasingly looked like the downside of that: a deal that had the potential to absolutely wreck MXL if the cycle didn't turn. by last summer, it still hadn't, and for MXL is still hasn't (though SIMO is showing some green shoots, pretty good Q4 for them while MaxLinear's wa snot)