Billion SoftBank

SoftBank near $40 billion deal to sell Arm Holdings to Nvidia – MarketWatch

The Wall Street Journal

The union of Arm, Nvidia would create a powerhouse in the chip industry

The Nvidia A100 graphics processing unit.


SoftBank Group Corp. is nearing a deal to sell British chip designer Arm Holdings to Nvidia Corp. for more than $40 billion, 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 Wall Street Journal reported Saturday. 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, assuming it isn’t derailed at the last minute.

Arm designs microprocessors that power most of the world’s smartphones. By joining forces with Nvidia, the combined company would be a powerhouse in the semiconductor or chip industry.

Nvidia is a fast-growing industry player whose chips are used to run the intense calculations for graphics—and play a key role in videogaming, cloud-computing and other activities for which the coronavirus pandemic has stoked demand. That has sent its shares up more than 100% this year, making it the best-performing stock in the S&P 500 index


Should a deal come together, it would be one of the largest transactions so far this year and potentially the largest semiconductor deal ever. Though business disruptions stemming from the pandemic have dented global deal volume, consolidation has kept up pace in the semiconductor industry as chip makers seek scale and expand their product portfolios to support the increasing number of everyday items that are connected to the internet. Such linkage is commonly referred to as the Internet of Things. Another of the year’s biggest deals was the $22 billion purchase of Maxim Integrated Products Inc. by fellow chip maker Analog Devices Inc.


A sale to Nvidia could prompt scrutiny from antitrust regulators and potentially pushback from Arm’s customers, which include major chip makers and electronics manufacturers such as Intel Corp.

 , Samsung Electronics Co. and Apple Inc


An expanded version of this story appears on

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announces SoftBank

SoftBank announces that Jack Ma will leave its board ahead of earnings report – CNN

Hong Kong (CNN Business)SoftBank lost a major name from its board and confirmed historic losses on Monday — signs of turmoil at the Japanese conglomerate after it was battered by the coronavirus pandemic and a series of tech bets gone bad.

Hours before SoftBank reported a record annual operating loss of 1.36 trillion yen ($12.7 billion) — the worst in at least 20 years, according to the data provider Refinitiv — it announced that Alibaba (BABA) founder Jack Ma would resign from its board. Ma, who is still a director of the Chinese e-commerce company, had held the position for nearly 13 years.
He’s the latest noteworthy board member to leave, after billionaire and Fast Retailing (FRCOF) founder Tadashi Yanai’s departure at the end of last year.
Ma’s exit is particularly noteworthy because of his closeness to SoftBank founder and CEO Masayoshi Son. Son invested $20 million in Alibaba in 2000, a bet that was worth $60 billion when Alibaba went public in 2014.
SoftBank did not explain the reasoning behind Ma’s departure. But the company has been taking dramatic measures to shore up its finances, including a plan to sell $41 billion in assets.
During the earnings presentation Monday, Son revealed that the company had secured $11.5 billion in funding by doing deals that allow SoftBank to sell Alibaba stock in the future.
SoftBank’s 25.1% stake in the company is currently worth more than $133 billion.
It’s been a tumultuous time for SoftBank. The sweeping, worldwide restrictions on work and travel caused by the coronavirus pandemic have walloped the company’s investment portfolio.
Some of Son’s major tech investments, meanwhile, faced rough receptions on Wall Street long before the outbreak. The losses that SoftBank reported Monday were in line with its own recent forecasts and driven almost entirely by SoftBank’s Vision Fund, the $100 billion tech fund steered by Son.
SoftBank said the Vision Fund and affiliated funds suffered operating losses of 1.9 trillion ($17.7 billion) for the fiscal year that ended in March. The values of Uber (UBER), WeWork and other portfolio companies fell significantly in the three months to March “primarily due to the impact” of the virus, the company said.
“If the pandemic continues, the company expects that uncertainty in its investment businesses will remain over the next fiscal year,” SoftBank added.
Son is trying to right the ship. In March, the company made the surprise announcement that it would sell assets to buy back shares and reduce the company’s heavy debt load.
The Japanese company on Monday also said it is buying back up to 500 billion yen ($4.7 billion) worth of shares over the next year, the second share purchase of this size since March. More buybacks are likely on the way: The company has said it wants to repurchase up to 2 trillion Japanese yen ($18 billion) in stock.
Shares in SoftBank closed up 1% in Tokyo, outperforming the broader Nikkei 225 (N225), which ended the day 0.5% higher. The stock has lost 21% since its most recent peak last July.

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