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Nvidia CPU's? Nvidia is looking at a takeover bid for ARM

humbug said:
If i hand $90bn to AMD's Board of Directors do i have control?
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jigger said:
No, the CEO would have control.
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It depends on the structure of the deal and the structure of the company that ends up owning AMD.
Usually the board of directors have the power to overthrow the CEO through a vote of no confidence and have them removed.
But if I buy AMD with a company that I own 100% of and structure it that I have all the voting rights then I have all the control.
 
smilingcrow said:
It depends on the structure of the deal and the structure of the company that ends up owning AMD.
Usually the board of directors have the power to overthrow the CEO through a vote of no confidence and have them removed.
But if I buy AMD with a company that I own 100% of and structure it that I have all the voting rights then I have all the control.
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That control isn’t in place, and ousting CEO’s is topical and expensive. SoftBank lost control of ARM, and ARM is more of a conglomeration than it is a corporation.
 
jigger said:
That control isn’t in place, and ousting CEO’s is topical and expensive. SoftBank lost control of ARM, and ARM is more of a conglomeration than it is a corporation.
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What control exactly and for whom?
Conglomerates are still corporations but often with a more complicated structure.
The Holding company should have the power though as it holds the shares in the lesser entities and is the listed company.
Softbank have/had an issue with their Chinese subsidiary which they have a minority stake of ~49% in.
That doesn't necessarily mean they have ultimately lost control but it does look messy.
Again it depends on the structure of the companies involved and in this case dealing with China, and Trump etc etc.

What do you mean by 'topical and expensive'?
The expense will depend on the terms of the contract but is chicken feed compared to damage that a CEO can do.
Topical!
 
CAT-THE-FIFTH said:
He voted against the sale to SoftBank originally,but the Chairman and board got greedy and overruled him.

Now the same chairman regrets pushing the sake through:
https://www.cambridge-news.co.uk/business/business-news/i-regret-selling-arm-says-13926432

Ask that guy why he got greedy then?

Countries such as the US and Japan wouldn't allow foreign sales of major companies. As usual the last 30 years of our governments don't care,giving useless reasons. An example when European countries wanted to tariff dumped steel to protect local steel industries but our lot didn't want to.

Yet the US,Japan,South Korea,France,etc can protect strategically important companies with no downsides.
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The UK is Arsenal FC. We're a selling club :p

Eventually, somebody will have the bright idea of just selling the entire UK to the US or China.

Everything has a price. That's the motto of this country['s governments]. The buyer just needs to pay their "respects" to the government of the day.
 
4K8KW10 said:
The CEO is only the highest positioned employee - the board of directors is above and the owners.
If they want, they can replace the CEO in any given moment.
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The CEO can one or more of those, but as I said ARM is more like conglomerate than a corporation. It’s not a traditional arrangement and and integration will be difficult.
 
jigger said:
ARM is more like conglomerate than a corporation. It’s not a traditional arrangement and and integration will be difficult.
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It's not a conglomeration in any meaningful way, it's more at the other end of the corporate spectrum in that sense.
If it does consist of a complex corporate structure then that's a separate issue.
Large multinational corporations tend to have separate subsidiary companies incorporated in dozens of countries by the very nature of how they trade.
That itself doesn't make them conglomerations.
Softbank itself can be classed as a conglomerate though.

There are definitely massive hurdles to overcome before this deal can be completed.
It probably comes down to protectionism and cronyism more than anything else.
 
smilingcrow said:
It's not a conglomeration in any meaningful way, it's more at the other end of the corporate spectrum in that sense.
If it does consist of a complex corporate structure then that's a separate issue.
Large multinational corporations tend to have separate subsidiary companies incorporated in dozens of countries by the very nature of how they trade.
That itself doesn't make them conglomerations.
Softbank itself can be classed as a conglomerate but not ARM.
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UK ARM only has a 49% stake in Arm China.

So what is it then? It doesn't have control over Arm China (quite blatantly - Arm China is taking legal advise and rejecting UK Arm's demands, along with removing UK Arm's influence by booting out one of their reps).
 
FoxEye said:
UK ARM only has a 49% stake in Arm China.
So what is it then?
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It's termed a minority owned subsidiary.
It's common for corporations to have other investors in their foreign subsidiaries and sometimes that is a legal requirement in some countries.
China often enforce this I believe.

A conglomerate is a multi-industry company – i.e., a combination of multiple business entities operating in entirely different industries.
ARM don't fall into that category as they are limited in the sectors they operate in.
 
What it is is a PITA for nVidia. Arm China have even said they'll think about trying to block the whole thing.

And the Chinese govt might seek to block the whole thing.

It's going to be far from plain sailing for nV.
 
FoxEye said:
What it is is a PITA for nVidia. Arm China have even said they'll think about trying to block the whole thing.

And the Chinese govt might seek to block the whole thing.

It's going to be far from plain sailing for nV.
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It's a very audacious move and looks like a real pain in the arse to be able to complete it.
Whether ARM China has any meaningful say in it will depend partly on the exact terms of the relationship it has with the main ARM holding company.
They may have little power.
God knows what the Chinese government might do!
Invade Taiwan and Nationalise TSMC and cease fabricating chips for Western companies.
If Trump gets back in things might get really ugly.
Buy your new CPUs and GPUs before the election people.
 
jigger said:
China has its own fabs.
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They are way behind TSMC and even Intel! :)
Fabs are tools of war in cyber terrorism so it's not beyond China to do something outrageous.
Ordinarily I'd say the odds are very low, but with Trump and the ARM deal they may feel in a corner and lash out.
Still highly unlikely and this is one area where Intel are better off than the competition!
Don't say that so often these days. :D
 
smilingcrow said:
It's a very audacious move and looks like a real pain in the arse to be able to complete it.
Whether ARM China has any meaningful say in it will depend partly on the exact terms of the relationship it has with the main ARM holding company.
They may have little power.
God knows what the Chinese government might do!
Invade Taiwan and Nationalise TSMC and cease fabricating chips for Western companies.
If Trump gets back in things might get really ugly.
Buy your new CPUs and GPUs before the election people.
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Thing with semiconductor fabrication there is much more to it than just seizing control of the facilities - if China overran Taiwan and took control of TSMC they'd probably still not have all the building blocks to do much more than scale up to 28nm planar production over several years and probably another decade after that before they were capable of running the whole end to end pipeline of producing 7nm, etc.

In a similar vein it is why Russia has such an interest in staging the ability to quickly ramp up to invade Japan even today (hence a lot of the dispute over the Kurils) as their domestic semiconductor capabilities lag behind and advanced electronics are crucial to some of their higher end hardware such as the S-400 and S-500 systems - but in reality even seizing those facilities doesn't guarantee they can actually produce stuff without all the people in place to run production and do all the design work, etc.
 
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