SoftBank sells chip designer Arm to Nvidia Corp in $40 billion deal

TOKYO/SAN FRANCISCO (Reuters) – SoftBank Group Corp said on Monday it has agreed to sell chip designer Arm to Nvidia Corp for as much as $40 billion in a deal set to reshape the semiconductor landscape.

The deal puts a vital supplier to Apple Inc and others across the industry under the control of a single player and will face potential pushback from regulators and Nvidia rivals.

Nvidia will pay SoftBank $21.5 billion in shares and $12 billion in cash, including $2 billion on signing. The deal will see SoftBank and the $100 billion Vision Fund, which has a 25% stake in Arm, take a stake in Nvidia of between 6.7% and 8.1%.

SoftBank could also be paid an additional $5 billion in cash or shares depending on the chip designer’s business performance, with Arm employees to be paid $1.5 billion in Nvidia shares.