Feb. 3 at 9:55 PM
PickAlpha Midday-
Texas Instruments is reportedly in advanced talks to acquire Silicon Laboratories for about
$7B, per the Financial Times (also picked up by Reuters). Terms weren’t disclosed and the discussions could still fall apart. 
Tickers:
$SLAB $TXN $SOXX
Our view is this is a
$SLAB deal-option story first and a
$TXN capital-discipline story second. If a credible price/structure is confirmed,
$SLAB can hold a takeout floor; if talks collapse, expect a fast give-back. For
$TXN, the only thing that matters: are they buying a tight IoT adjacency at a sane multiple—or “buying growth” at peak optimism?
