Nvidia Corp. Co Arm Holdings’ imminent sale at $ 40 billion could have broader implications for the global semiconductor industry, upgrading one of its highest fliers and opening another large stake by SoftBank Group Corp.
The Japanese technology group said late Sunday that it had reached a deal to sell Nvidia for a mix of cash and stock, confirming a report by The Wall Street Journal on Saturday. Nvidia nvda,
Will pay $ 21.5 billion in stock and $ 12 billion in cash. Softbank 9984,
One can also get up to $ 5 billion in cash or stock to meet the arm-financial-performance target. Nvidia Arm will issue $ 1.5 billion in stock to employees.
The deal, which is the largest semiconductor takeover ever, marks a victory for SoftBank and its chief executive, Masayoshi Son, who bought Arm four years ago for $ 32 billion and struggled to start growing the business Was.
For Nvidia’s chief executive Jensen Huang, this is the biggest gamble since he helped co-founder the chipmaker in 1993. Nvidia is a rapidly emerging industry player, known for making graphics chips that power video like the wildly popular Nintendo Switch. Chips have been in hot demand during the epidemic as lockdowns keep people at home.
An expanded version of this report appears on WSJ.com.
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