Nvidia to Acquire Arm for $40B

Re:Nvidia to Acquire Arm for $40B by HenryBemis on Monday September 14, 2020 @03:25AM (#24467708)

Correct, if it's shares, they just dilluted the value of the stock. If I owned 1% of the company, after printing and handing out $40bn worth of stock, then I keep the same amount of stock, but now it's (e.g.) 0.5%, which means I just lost 50% of that investment. Which means I will receive 50% of the dividend (since out of the next year's dividend 'pool' someone will get a big chunk. Which means NVidia just screwed the existing shareholders (for the time being, and once the numbers/$ are merged I should be getting my dividend by two parts, one from ARM and one from NVIDIA).

If they gave away cash, that's a different story, it all depends.. if they were sitting on $1tn cash, and the spent $40bn, that's no biggie. I mean we went through COVID, what worse can come next?

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Re:Nvidia to Acquire Arm for $40B by kd5bjo on Monday September 14, 2020 @05:53AM (#24468419)

> If I owned 1% of the company, after printing and handing out $40bn worth of stock, then I keep the same amount of stock, but now it's (e.g.) 0.5%, which means I just lost 50% of that investment. Which means I will receive 50% of the dividend

Well, you’re now getting 50% of the dividend produced by the new combined entity. If the deal was correctly priced, your share of the Arm dividend should exactly replace the portion of your Nvidia dividend that you lost through dilution.

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Re:Nvidia to Acquire Arm for $40B by throwaway5792 on Monday September 14, 2020 @04:53PM (#24475018)

That's not how equity works. Paying cash or shares, the end result is exactly the same for shareholders barring perhaps some tax implications.

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