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THE BIGGEST DEAL IN SEMICONDUCTORS. Softbank sells the branch to NVIDIA

The WSJ reports Saturday that Softbank is preparing a deal to sell British chipmaker ARM Holdings (a wholly owned subsidiary) to Nvidia Corp for over $ 40 billion. A low-end sale of $ 40 billion would actually be a good deal for SoftBank – the company bought the stake just 4 years ago for $ 32 billion.
Due to a dispersed and poorly reasoned expansion policy in the technology sector, Softbank is in the curious position of also owning a stake in the company it is buying:

Nvidia and SoftBank would be in "advanced negotiations" and an agreement could be reached as early as next week.

This agreement, one of the largest in history, would also have great value for the moment it is announced, at the dawn of a new close in the US-China trade war. The new US sanctions against Huawei and the news, announced less than a week ago, that Washington could add SMIC, China's largest chip maker, to the American blacklist by preventing it from using American products or even the technology produced in the US they are expected to create unprecedented supply chain disruptions, particularly in Asia. Any other western chip maker could benefit from this, so even NVIDIA with the new “Arm” bought from Softbank.

What will happen to the money collected by the Japanese conglomerate? They will offset the losses due to the closing of the "Call" positions made by the company last week and which also led to a correction in the market, with the end of a rally in US tech stocks that has been going on for months now. Softbank by closing its bullish positions has lost its feathers, and has suffered substantial losses. Now he licks his wounds.


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The article THE BIGGEST DEAL IN SEMICONDUCTORS. Softbank sells the branch to NVIDIA comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-piu-grande-affare-nei-semiconduttori-softbank-vende-il-ramo-a-nvidia/ on Sun, 13 Sep 2020 09:26:46 +0000.