3 ms·
8B at zero percent interest would only increase the return to about 6% compounded.
by valuearb 6y ago
8B at zero percent interest would only increase the return to about 6% compounded.
- Retric 6y agoSoftBank bought Arm in 2016 for $32 billion. A 32B investment turned into 40B over 4 years is 6% ROI. (32 * 1.06^4) = 40.3 8B + 24B loan turned into 40 Billion - 24B loan = 16B or 8B in profits minus interest. Which could be up to a 19% annual ROI 1.19^4 ~= 2x. I don’t know what their loan interest rate look like, but I suspect it’s shockingly low.
- valuearb 6y agoSorry I misread your post, thanks for the clarification.