Nvidia Corporation (NASDAQ: NVDA) CEO Jensen Huang said Wednesday that while the company’s acquisition of rival British chipmaker Arm Ltd. was pricey, the latter’s network of customers makes it well worth the cost, Reuters reports.
What Happened: Huan made the remark, addressing SoftBank Group Corp (OTC: SFTBY) Masayoshi Son, in a pre-recorded message for the Japanese conglomerate’s annual conference “SoftBank World.”
“I had to pay you an arm and a leg for it,” the Nvidia CEO told Son. “I told you I was going to be the last and highest bidder.”
Huang justified Arm’s price tag saying that the chipmaker’s network of customers made it worthwhile and that he wants to expose those customers to Nvidia’s artificial intelligence technology, as per Reuters.
Son revealed that he met Huang four years ago at his California home’s garden and they talked about Apple Inc (NASDAQ: AAPL) co-founder Steve Jobs and the impact the iPhone had on the “lifestyle of humanity.”
“I think in the next 10 years, you are the one Jensen [to have a similar impact],” said Son.
Why It Matters: In September, Nvidia said it would buy Arm from SoftBank for $40 billion in a stock and cash deal.
The deal is under the scrutiny of the United Kingdom government, with Arm CEO Hermann Hauser calling it a “disaster” for Cambridge, the U.K., and Europe.
Another potential impediment to the deal is getting the go-ahead from China, which would want to avoid the “nightmare” of a U.S. company owning Arm, according to Sebastian Hou, head of technology research at CLSA.
Price Action: Nvidia shares closed nearly 5.8% lower at 505.08 on Wednesday and gained 0.7% in the after-hours session. On the same day, SoftBank OTC shares closed 1.09% lower at $32.68.
Photo courtesy: Nvidia Corp.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
