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Weekly Digest: VMware’s Acquisition, Hyandai’s Investments, and Saudi Stocks of Nintendo 🗾💰

Chip-producer Broadcom to Acquire a Cloud Giant VMware for $50B 💽💸

According to Financial Times, an American chip-producing company Broadcom is negotiating the acquisition of VMware, a software developer.

The agreement will turn Broadcom into a diversified tech enterprise that works in different areas, from chips to cloud computing solutions.

In addition, the deal will bring a great financial benefit to the billionaire Michael Dell. In 2916, his company Dell acquired VMware for $67 billion. Today Michael owns 36% of VMware’s stocks valued at $15 billion.

VMware is one of the leaders in cloud computing technology. Its services are used by major corporations for managing private and available cloud nets, as well as data centers.

However, the company’s stocks have collapsed in the last few years which made it a target for acquisitions.

The transaction cost is estimated at roughly $50 billion, wherein Michael Dell can earn about $15 billion.

Hyundai Invests $10B in Its Development in the US 🚙

A South Korean automaker has planned to invest in robotics and artificial intelligence.

As Hyundai Motor Group states, the company will have invested additional $10 billion in the US by 2025. The aim is to enhance the partnership with American enterprises in the field of advanced technologies.

The investments relate to robotics, urban air mobility, autonomous driving, and artificial intelligence.

During the meeting with the US president Joe Biden, the head of Hyundai Motor Group Chung Eui-sun announced the intention to build a new e-car factory in Savannah, Georgia city. They plan to invest around $5,5 billion in the project.

Thanks to this investment, the overall amount of the US will reach approximately $10 billion, which is $7,4 billion more than was stated last year.

Saudis Acquired 5% of Nintendo for $3B 🎮

The Public Investment Fund of Saudi Arabia became the fifth largest stockholder of the Japanese game console company. The fund acquired 6,5 million stocks which is valued at $2,98 billion.

According to Bloomberg, this is not the first PIF acquisition in the video games market. In February, it announced the ownership of over 5% shares in two more companies — Capcom Co. and Nexon Co.

Nintendo claimed that the global shortage of semiconductor components would continue to restrain the production of Switch game consoles.

In 2021, their sales dropped to 23 million units which is nearly 6 million less than a year before. This year, the company is intended to produce 21 million consoles.
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