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Nvidia to Acquire Arm for $40B

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Re: Nvidia to Acquire Arm for $40B

#461

Post by sgt101 »

oxfordmale wrote: post #391
walterbell wrote: post #273

Earlier quoted context omitted.

There were two separate IoT business units: Platform ( https://pelion.com ) and Data ( https://www.treasuredata.com/ ). The Platform unit fits the Segars post-acquisition comment about end-to-end IoT software architecture, https://news.ycombinator.com/item?id=24465005 > One person close to the talks said that Nvidia would make commitments to the UK government over Arm’s future in Britain, where opposition politicians…

The UK government never learns. Kraft made similar promises when buying Cadbury regarding jobs,but quietly reneged on them over time. The Kraft CEO was asked to show up before an UK parliament committee, but of course declined, and that was the end of the story.

What's this "quietly reneged over time"! Kraft simply welshed on the deal instantly! There were explosions and a change in the law.

Re: Nvidia to Acquire Arm for $40B

#462

Post by manquer »

bananaface wrote: post #443
manquer wrote: post #429

Earlier quoted context omitted.

It is not "free", it means current shareholders of Nvidia are paying for the remaining money. Their stock is diluted on fresh issue of shares.[1] The $12B comes from Nvidia the company, the remaining money comes from Nvidia's shareholders directly. [1] Only if the valuation of ARM is "worth it" the fresh issue of shares will not cost the current shareholders anything. This is rarely the case , if Nvida overvalued(or…

And note that the $12B is also owned by Nvidia's shareholders (they own the company which owns the cash), so they're paying for that too. It's just different forms of shareholder assets being traded for other assets, by the shareholders (or rather, their majority vote).

Effectively all of it is funded by the shareholders who "own" the corporation.

In the current example if the cash is coming from a debt instrument is it not bank funding it now?

it is typically about who is fronting the money now, it could be your bank making loans, or from cash reserves you have, fresh stock issue, selling another asset, or even the target's bank as in the case of LBO.

The shareholders always end up paying for it eventually in some form or other. Differentiating it by the current source helps understand the deal structure and risks better.

Re: Nvidia to Acquire Arm for $40B

#464

Post by bananaface »

fauigerzigerk wrote: post #452
bananaface wrote: post #446

Earlier quoted context omitted.

Not necessarily. They could just prefer to be diversified. It can be rational to take a loss of value in the pursuit of diversification (depends on the portfolios of the stakeholders). They could also think their shares are valued accurately but believe the benefits of synthesis would increase the value.

How would any of that make payment in shares beneficial compared to cash payment?

$12B cash appears to be all they have available. They can't pay more cash.

https://www.marketwatch.com/investing/stock/nvda/financials/...

Their only other option would be taking on debt.

Re: Nvidia to Acquire Arm for $40B

#465

Post by bananaface »

manquer wrote: post #462
bananaface wrote: post #443

Earlier quoted context omitted.

And note that the $12B is also owned by Nvidia's shareholders (they own the company which owns the cash), so they're paying for that too. It's just different forms of shareholder assets being traded for other assets, by the shareholders (or rather, their majority vote).

Effectively all of it is funded by the shareholders who "own" the corporation. In the current example if the cash is coming from a debt instrument is it not bank funding it now? it is typically about who is fronting the money now, it could be your bank making loans, or from cash reserves you have, fresh stock issue, selling another asset, or even the target's bank as in the case of LBO. The shareholders always end up…

Absolutely. I was just noting it for anyone reading.

Re: Nvidia to Acquire Arm for $40B

#466

Post by fluffything »

deafcalculus wrote: post #458
fluffything wrote: post #456

Earlier quoted context omitted.

> I can see nVidia replacing Mali smartphone GPUs in low to mid-end Exynos SoCs and the like. Replacing these with what? What nvidia gpus can operate at that power envelope ?

Lower power versions of what they put in Tegra / Switch? Or perhaps they can whip up something in 1-2 years. I'd be astonished if nVidia doesn't take any interest in smartphone GPUs after this acquisition.

A nintendo switch has ~2 hours of battery...

There is a big difference between having interest in a market, and being able to compete in it. There are also many trade-offs.

Nobody has designed yet a GPU architecture that works at all from 500W HPC clusters to sub 1W embedded/IoT systems, much less that works well to be a market leader in all segments. So AFAICT whether this is even possible is an open research problem. If this were possible, there would already be nvidia GPUs at least in some smartphones and IoT devices.

Re: Nvidia to Acquire Arm for $40B

#467

Post by inopinatus »

xbmcuser wrote: post #282
walterbell wrote: post #273

Earlier quoted context omitted.

There were two separate IoT business units: Platform ( https://pelion.com ) and Data ( https://www.treasuredata.com/ ). The Platform unit fits the Segars post-acquisition comment about end-to-end IoT software architecture, https://news.ycombinator.com/item?id=24465005 > One person close to the talks said that Nvidia would make commitments to the UK government over Arm’s future in Britain, where opposition politicians…

Are they getting 10% of nvidia or keeping 10% of Arm

Given the quality of the reporting so far it’s possible that they are getting 10% of the UK.

Re: Nvidia to Acquire Arm for $40B

#468

Post by fauigerzigerk »

bananaface wrote: post #464
fauigerzigerk wrote: post #452

Earlier quoted context omitted.

How would any of that make payment in shares beneficial compared to cash payment?

$12B cash appears to be all they have available . They can't pay more cash. https://www.marketwatch.com/investing/stock/nvda/financials/... Their only other option would be taking on debt.

Right, so Nvidia with their A2 rating and their solid balance sheet in a rock bottom interest rate environment still found it favourable to purchase Arm with newly issued shares.

That's telling us something about what they think about their share valuation right now.

Re: Nvidia to Acquire Arm for $40B

#470

Post by rvense »

exikyut wrote: post #214
dragontamer wrote: post #105

Earlier quoted context omitted.

Not quite 48-pin QFP chips, but 257-pin embedded is still smaller than Rasp. Pi. (Just searched what NXP's newest Power-chip is, and its a S32R274: 2MB 257-pin BGA. Definitely "embedded" size, but not as small as Cortex-M0) To be honest, I don't think that NVidia/ARM will screw over their Cortex-M0 or Cortex-M0+ customers over. I'm more worried about the higher-end, whether or not NVidia will "play nice" with its big…

The FS32R274VCK2VMM appears to be the cheapest in this series; Digi-Key have it for $30, NXP has it for "$13 @ 10K". This is for a 200MHz part. https://www.nxp.com/part/FS32R274VCK2VMM https://www.digikey.com/product-detail/en/nxp-usa-inc/FS32R2... The two related devkits list for $529 and $4,123: https://www.digikey.com/products/en/development-boards-kits-... -- Those processors make quite a few reference to an "e20…

These are all basically ten-year-old parts, aren't they?
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