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SoftBank Deal to Sell Arm Has $1.25 Billion Breakup Clause. Nvidia Pays $750 Million Licensing Fee.

(NVDA) has agreed to pay (9984) $1.25 billion in the event that the planned sale of the chip design house Arm Holdings to Nvidia fails to close. The rest of the $2 billion reflects $750 million paid to Arm—not its parent, SoftBank—for the licensing of intellectual property. It isn’t immediately clear why Nvidia would need to pay a licensing fee for technology that it is in the process of buying. Read More...

(NVDA) has agreed to pay (9984) $1.25 billion in the event that the planned sale of the chip design house Arm Holdings to Nvidia fails to close. The rest of the $2 billion reflects $750 million paid to Arm—not its parent, SoftBank—for the licensing of intellectual property. It isn’t immediately clear why Nvidia would need to pay a licensing fee for technology that it is in the process of buying.

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