- Jun 1, 2017
It's not $40B, it's $35B of which only $12B is actual hard cash, paid in several instances (the first being only $2B). $23B are in stocks, $21.5B for SoftBank, and $1.5B for Arm employees. One could argues spreading stock ownership is not the worst thing to happen to a public company. The remaining $5B depend on how Arm fares, if it fares well it costs some more, but likely that additional cost is worth a shrug when it actually comes down to it and may be paid out in stocks as well.In other words, is ARM IP and owning its in-house engineer team worth $40B? Nvidia must have thought so, and I guess the price is easier to bear since Nvidia stock is pretty much at an all-time high.
What Nvidia gets is future proofing its business and being able to offer fully vertically integrated solutions.