New York – SoftBank Group Corp. is nearing a deal to sell Arm Holdings PLC to Nvidia Corp. for over $40 billion, or ¥4.2 trillion, The Wall Street Journal reported Saturday.
After weeks of negotiations, the deal to sell the British semiconductor designer to the U.S. chipmaker may be struck early next week, according to the U.S. business daily.
SoftBank Group bought Arm for ¥3.3 trillion in 2016. But its growth fell short of expectations, the newspaper said.
SoftBank Group faces the need to reduce its huge interest-bearing debts through asset sales as the business environment changed drastically due to the novel coronavirus pandemic.
Chairman and Chief Executive Officer Masayoshi Son has said his group is considering selling part or all of its shares in Arm or getting the company relisted. According to The Wall Street Journal, the terms under discussion “would mark a big win” for his group.
Arm’s technologies are used in various products including smartphones. Nvidia is a graphic-processor powerhouse, achieving rapid growth by expanding the use of such processors to strengthening artificial intelligence engines.
The deal, if concluded, is expected to be one of the biggest in the chip industry, the newspaper said. But it added that the transaction would likely be subject to antitrust reviews.
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