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>ARM royalty portion is not an important cost factor That's exactly the reason why Nvidia's pending acquisition of ARM is so suspect. There's not much money to
by starfallg 6y ago
>ARM royalty portion is not an important cost factor
That's exactly the reason why Nvidia's pending acquisition of ARM is so suspect. There's not much money to be made in ARM's business model hence it really only makes sense if they plan on exploiting the synergy of ARM + Nvidia tech in a way that only ownership of the company allows them to.
- baybal2 6y agoNo, an option to hike royalties is very much on the table given ARM's very liberal fees by industry standards. High volume, high margin fat lambs like Qualcomm merrily eating grass around, or obscenely high margin high-end network chips would've ended on a dinner plate much, much earlier if ARM had an American business culture.
- starfallg 6y agoSoftbank can do that themselves if that was the plan.
- Tostino 6y agoSoftBank needs cash now, not later. Their horrible bets all got called this year.
- starfallg 6y agoSoftbank is getting just $2bn right now. And the next payment at closing is only $10bn, the rest is in stock. The whole Softbank needs cash now to fill the WeWork hole doesn't add up. They could have made more cash with an IPO, in similar timescales.