Softbank has reportedly amassed a $4 billion stake in Nvidia

By midian182 ยท 5 replies
May 24, 2017
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  1. Japanese multinational telecommunications corporation Softbank has accumulated a $4 billion stake in Nvidia, making it the chipmaker’s fourth-largest shareholder, according to a Bloomberg report citing people familiar with the matter.

    Softbank disclosed that it owned an unspecified amount of Nvidia stock when it announced it had closed a $93 billion “Vision Fund” over the weekend - a technology fund created by Softbank founder Masayoshi Son along with Saudi Arabia and other investors.

    Softbank is believed to hold a 4.9 percent stake in Nvidia; any more would require regulatory disclosure in the US. The amount equates to around $4 billion.

    Back in July last year, Softbank agreed to acquire British chip design company ARM Holdings for £23.4 billion (about $31 billion). Six months after the deal was signed, it sold 25 percent of ARM to the Vision Fund, which is based in London.

    The fund’s $100 billion comes from Saudi Arabia ($45 billion) and Softbank itself ($25 billion). The remainder is made up by global investors such as Apple and Oracle’s Lawrence Ellison. Son pledged to invest half the fund into US tech firms, telling Donald Trump that it would help create 50,000 jobs in the country.

    Softbank is no stranger to large investments. It poured $21.6 billion into US network carrier Sprint Nextel back in 2013 – the biggest foreign investment by a Japanese firm at the time. It’s also invested $5 billion into Chinese ride-hailing firm Didi Chuxing.

    Nvidia shares rose as much 5.5 percent in Germany on the back of the news.

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  2. psycros

    psycros TS Evangelist Posts: 2,181   +1,714

    Deals like this make you wonder if its more about profit or gaining strategic leverage over the tech industry. Then again, is there any difference?
     
    Reehahs likes this.
  3. VitalyT

    VitalyT Russ-Puss Posts: 3,996   +2,387

    It's all about profit, strategic or otherwise.
     
    Raoul Duke likes this.
  4. Spect

    Spect TS Booster Posts: 33   +24

    Does that mean investing in Nvidia is a smart move? Should we all run out and buy stock in Nvidia? I would imagine a company as large as SoftBank has an army of economic advisors, accountants, and money gurus. And they think it is a good idea to invest in Nvidia... Maybe we should do the same..
     
  5. davislane1

    davislane1 TS Grand Inquisitor Posts: 5,207   +4,317

    Profit it always the motive. People don't build up resumes for volunteer opportunities and companies don't assume risk for charity.
     
    Raoul Duke and MoeJoe like this.
  6. mosu

    mosu TS Guru Posts: 484   +87

    SoftBank has somehow to lose money... in the right direction.
     

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