Silicon Motion could be easy target for Microchip Tech, Marvell, Broadcom
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Silicon Motion (NASDAQ:SIMO), which reportedly is exploring a sale after takeover interest, could be an "easy tuck-in" candidate for most fabless design houses, according to a Wedbush analyst. SIMO jumped 9.2%.
Microchip Technology (MCHP), Marvell (MRVL) and Broadcom (AVGO) may be potential buyers of SIMO given their exposure to SSD controllers would likely yield cost/design synergies, Wedbush analyst Matt Bryson wrote earlier in a note. The company could also see possible interest from Qualcomm (QCOM) and Mediatek (OTCPK:MDTKF).
Bloomberg reported late Sunday that Silicon Motion is exploring a sale following interest following a report on Friday from Betaville that there was speculation that a mystery buyer was circling the semiconductor company. 
"The only question with any such proposal would be potential anti-trust concerns, particularly with companies that already have larger storage businesses (e.g., AVGO and MRVL)," Bryson, who has an outperform and $115 price target on SIMO, wrote in the note. 
Bryson sees NAND fab interest for Silicon Motion as less less likely. Private equity may also want to acquire SIMO given its "attractive" valuation and strong growth prospects.
Also see from Friday, Broadcom back in FTC antitrust crosshairs over chip deals.