https://nvidianews.nvidia.com/news/nvidia-to-acquire-arm-for...
> Under the terms of the transaction, which has been approved by the boards of directors of NVIDIA, SBG and Arm, NVIDIA will pay to SoftBank a total of $21.5 billion in NVIDIA common stock and $12 billion in cash, which includes $2 billion payable at signing. The number of NVIDIA shares to be issued at closing is 44.3 million, determined using the average closing price of NVIDIA common stock for the last 30 trading days. Additionally, SoftBank may receive up to $5 billion in cash or common stock under an earn-out construct, subject to satisfaction of specific financial performance targets by Arm.
Since NVIDIA currently has 617 million shares outstanding, if the earn-out were to be fully in common stock, this would bring Softbank to 8.8% of NVIDIA from this transaction alone (plus anything they already have in NVIDIA as public-market investors).
(I believe that the Forbes analysis in the sibling comment is mistaken in describing this as a "10% stake in new entity" - no new entity is mentioned in the press release itself.)
The Forbes article is based on a joint interview today with the CEOs of Arm and Nvidia, who could have provided more detail than the press release, specifically:
> Arm operating structure: Arm will operate as an NVIDIA division
This level of detail can be confirmed during the analyst call on Monday. Operating as a separate division would help assuage concerns about Arm's independence. The press release says:
> Arm will remain headquartered in Cambridge ... Arm’s intellectual property will remain registered in the U.K.
Those statements are both consistent with Arm operating as a UK-domiciled business that is owned by Nvidia.
> Softbank ownership: Will keep 10% stake in new entity
That would mean Nvidia acquired 90% of Arm for $40B, i.e. Arm was valued at $44B.
Is Softbank invested in Arm licensees, who may benefit from Softbank influence? Alternately, which Arm licensees would bid in a future auction of Softbank's 10% stake of Nvidia's Arm division?
