SoftBank Negotiating 47 Trillion Won Sale of Semiconductor Company AM Holdings

Negotiations with US Nvidia... Agreement Expected Early Next Week

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japanese SoftBank is reportedly close to finalizing a deal to sell UK semiconductor design company Arm Holdings for $40 billion (approximately 47.48 trillion KRW), according to the Wall Street Journal (WSJ) on the 12th (local time).

WSJ, citing sources, reported that SoftBank's negotiations with US semiconductor company Nvidia over the sale of Arm Holdings could conclude early next week. The sources explained that the negotiations have been ongoing for several weeks and, barring any last-minute issues, the deal could be finalized soon.

The sale price is expected to be at least $40 billion. Considering SoftBank acquired Arm Holdings in 2016 for $32 billion, this represents an $8 billion profit in four years. WSJ described the terms under negotiation as a significant success for SoftBank.

Arm Holdings designs microprocessors used in most smartphones worldwide. Nvidia is a leading company in the graphics chip sector, primarily used in video games. If Nvidia acquires Arm Holdings, it would create a major player in the industry. WSJ noted, "If the deal goes through, it will be the largest semiconductor company transaction so far this year."

SoftBank has invested $4 billion in US IT and other corporate stocks, exposing itself to risk losses due to the recent decline in tech stocks. Previously, WSJ reported that SoftBank's exposure from call options is approximately $50 billion.

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