MaxLinear (NASDAQ:MXL) stock is falling on Thursday after the company canceled its planned acquisition of Silicon Motion Technology (NASDAQ:SIMO).
According to a press release from Silicon Motion Technology, MaxLinear sent it a termination notice of the merger. This came after the two companies received approval from the State Administration for Market Regulation in the People’s Republic of China for the combination.
Silicon Motion Technology issued the following statement about the canceled merger:
“MaxLinear’s eleventh-hour purported termination of its merger agreement with Silicon Motion is invalid and reflects a repudiation of MaxLinear’s obligations rather than any failure of Silicon Motion’s conditions to closing. Silicon Motion expects MaxLinear to abide by its obligation under the merger agreement and intends to vigorously enforce its rights under the merger agreement.”
How This News Is Affecting MXL and SIMO Stock Today
Shares of MXL stock are seeing heavy trading today, with some 5 million units on the move. For comparison, the company’s daily average trading volume is about 1 million shares. With that comes a 23.4% drop in its stock price today.
As for SIMO stock, more than 3.8 million shares have changed hands as of this writing. That’s also above its daily average trading volume of roughly 967,000 shares. This has the company’s stock down 16.1% as of Thursday morning.
Investors will want to stick around for even more stock market news worth reading about today!
We’ve got all of the biggest stock market stories that traders need to know about on Thursday! Among that is further details on the MXL and SIMO stock news, as well as what’s going on with shares of Joby Aviation (NYSE:JOBY) and Rivian (NASDAQ:RIVN) stock today. All of that news is ready to go at the links below!
More Thursday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
