Nvidia Buys SoftBank's Arm in Record $40 Billion Chip Deal

Nvidia Corp. agreed to buy SoftBank Group Corp.'s chip division Arm Ltd. for $40 billion, taking control of some of the most widely used electronics technology in the semiconductor industry's largest-ever deal. Nvidia will pay $21.5 billion in stock and $12 billion in cash for the U.K.-based chip designer, including a $2 billion payment at signing. SoftBank may receive an additional $5 billion in cash or stock if Arm's performance meets certain targets, the companies said Sunday in a statement. An additional $1.5 billion will be paid to Arm employees in Nvidia stock. SoftBank shares surged about 9% on Monday on news of the deal and renewed talks for the company going private.