SoftBank Group is selling British chipmaker Arm to Nvidia for US$40 billion in cash and stock. The Japanese conglomerate will still remain somewhat tied to Arm, through its ownership stake in Nvidia, which is expected to be under 10 per cent after the deal closes. SoftBank’s stock was up nine per cent on the news. (The Logic)

Talking point: The deal is estimated to be the largest transaction the semiconductor industry has ever seen, merging two electronics businesses that have captured vastly different product segments in the semiconductor space. But it’s not a done deal just yet—Arm is one of the U.K.’s most successful tech companies and the deal may be subject to a number of regulatory hurdles. SoftBank founder Masayoshi Son has admitted to having regrets “tactically” in his investments (namely, the WeWork debacle), but with the sale of Arm, he appears to be freeing up cash for other pursuits. Bloomberg reported that SoftBank is reviving talks about going private, though deliberations are at still at an “early stage.” Part of the reason might be to face less public scrutiny after recent media reports suggested SoftBank was using equity derivatives to bet on tech stocks, leading to a sharp investor pullout that cost the multinational about US$9 billion.