How NVIDIA's $40 Billion Arm Acquisition Could Reshape the Mobile Chip Industry
Following months of speculation, NVIDIA (NASDAQ: NVDA) confirmed over the weekend that it had entered into a deal to acquire Arm Holdings from SoftBank (OTC: SFTBY) for $40 billion in cash and stock. The deal's structure includes $21.5 billion in stock, $12 billion in cash, and a potential $5 billion earn-out for SoftBank if Arm can achieve certain performance targets. NVIDIA will also issue $1.5 billion in equity for Arm employees.
NVIDIA says the acquisition will complement its existing business, expand its reach, and accelerate its product road map. But there are far-reaching implications that could reshape the mobile chip industry.
Image source: NVIDIA.
Source Fool.com
