SoftBank Group Corp. is all set to close a deal to sell British chip designer Arm Holdings to Nvidia for more than USD 40 billion. The sale is the latest in the series of big asset sales by the Japanese multinational conglomerate holding company. According to people familiar with the matter, the deal is being negotiated in cash and stock. Reports said that the terms and conditions under discussion will prove to be a shot in the arm for SoftBank. Tokyo based company had bough Arm Holding for USD 32 billion four years ago. Nvidia has been in exclusive talks with Arm for several weeks and if everything goes as planned; the deal can be finalized as early as next week.
Arm Holdings is a company that designs microprocessors used in most of smartphones across the world. With Nvidia buying Arm, the combined company would become a powerhouse in the chip industry. On its part, Nvidia has been one of the fastest growing chip manufacturers. Its chips play a key role in cloud computing, video gaming and used to run the intense calculations for graphics. This is why the shares of the company shot up by more than 100 per cent this year, making it one of the best-performing stocks in the S&P 500 index.
However, Arm Holdings co-founder Hermann Hauser said that the deal could spell trouble for the company. Hauser said that the good part about Softbank acquiring the company was that it was not a chip designer and retained the neutrality of Arm Holdings. Hauser opined that he would prefer Arm Holdings to become a separate company altogether with the support of the British government. Once the deal is sealed, Hauser said that Arm Holding will simply become a division of Nvidia and all the decisions would be made in the United States. Meanwhile, the 2nd gen GeForce RTX 30 series of Nvidia will soon be available in the market.