Nvidia Buys SoftBank’s Arm for $40 Billion in Biggest Chip Deal

Advertisement

BEGIN ARTICLE PREVIEW:

Nvidia Buys SoftBank’s Arm in Record $40 Billion Chip DealMore(Bloomberg) — Nvidia Corp. said it agreed to buy SoftBank Group Corp.’s chip division Arm Ltd. for $40 billion, taking control of some of the most widely used electronics technology in the semiconductor industry’s largest-ever deal.Nvidia will pay $21.5 billion in stock and $12 billion in cash for the U.K.-based chip designer, including a $2 billion payment at signing. SoftBank may receive an additional $5 billion in cash or stock if Arm’s performance meets certain targets, the companies said Sunday in a statement. An additional $1.5 billion will be paid to Arm employees in Nvidia stock.SoftBank shares surged as much as 10% on news of the deal and renewed talks for the company going private.Read more: SoftBank Soars After Arm Deal, Renewed Talks to Go PrivateThe initial payment from Nvidia marks a small premium over the $31.4 billion that SoftBank paid to acquire Arm in 2016, previously the semiconductor industry’s biggest deal. The Japanese company is expected to own less than 10% of Nvidia following the transaction, according to the statement. Regulatory approval may take as long as 18 months before the transaction is completed and the deal needs sign-offs from U. …

END ARTICLE PREVIEW

READ MORE FROM SOURCE ARTICLE