Softbank To Sell Arm Unit To Nvidia For $40 Bil.
Japan's SoftBank Group has announced that it has agreed to sell leading chip designer Arm to US-based Nvidia in a deal worth up to 40 billion dollars.
SoftBank Group and its Vision Fund will sell all shares in UK-based Arm in a cash and stock deal.
SoftBank Group bought Arm four years ago for 31 billion dollars in one of the largest-ever foreign acquisitions by a Japanese company.
Nvidia will pay 21.5 billion dollars of the transaction price in common stock and 12 billion dollars in cash.
That gives SoftBank a stake of between 6.7 percent and 8.1 percent in the US semiconductor giant, which is also a leader in artificial intelligence.
By selling Arm, SoftBank plans to shore up its finances, which have been hurt by the coronavirus pandemic and poorly performing investments.
The Japanese group says it remains committed to Arm's long-term success through its ownership stake in Nvidia.
