
SoftBank Nearing Deal to Sell Arm Holdings to Nvidia for More Than $40B - GiorgioG
https://www.wsj.com/articles/softbank-nearing-deal-to-sell-arm-holdings-to-nvidia-for-more-than-40-billion-11599928360
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mroche
[https://archive.vn/gI81d](https://archive.vn/gI81d)

 _SoftBank Group Corp. is nearing a deal to sell British chip designer Arm
Holdings to Nvidia Corp. for more than $40 billion, according to people
familiar with the matter, the latest in a series of big asset sales by the
Japanese technology conglomerate._

 _The cash-and-stock deal being discussed would value Arm in the low $40
billions, the people said. The terms under discussion would mark a big win for
SoftBank, which bought Arm four years ago for $32 billion and had struggled to
jump-start growth in the business._

 _Arm and Nvidia have been in exclusive talks for several weeks and a deal
could be sealed early next week, the people said—assuming it isn’t derailed at
the last minute._

An $8+ billion ROI through this sale, wow. I wonder what the final terms of
the sale will be, if it's just a straight exchange cash for business or if
they'll maintain some kind of stake in Arm or NVIDIA. I'm not a financial
person, I don't know how these things typically work. Though I guess the real
fun begins with the potential legal proceedings on whether to allow the sale
at all.

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qeternity
It will almost certainly include a very large equity component.

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qeternity
On the surface this makes complete sense given Nvidia’s CPU ambitions but I
wonder what advantage it truly gives them in practice. Apple has already shown
you can make the best Arm chips without owning it.

