Chip maker Nvidia takes a $40B chance on Arm Holdings
After months of teasing and rumor, GPU and AI vendor Nvidia announced it would purchase Arm Holdings from its parent company SoftBank for $40 billion. The purchase includes $21.5 billion in Nvidia stock and $12 billion in cash, including $2 billion payable at signing. That will break the piggy bank because Nvidia had $10.9 billion in cash on hand as of the most recent quarter.Softbank acquired Arm in 2016 for $31.4 billion in 2016. At the time, SoftBank CEO Masayoshi Son said it was an investment in the Internet of Things. But SoftBank, known for its profligate spending on acquisitions and investments, made some bad investments in WeWork and Uber, among others, and was saddled with $25 billion in debt.To read this article in full, please click here