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Today's big stories

Chipmaker Nvidia agreed to buy chip-designer ARM in a massive takeover deal
There could be big opportunities in the busiest week for new initial public offerings in months – Read Now
Gilead Sciences struck a deal to buy Immunomedics for $21 billion

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ARM Candy

What’s Going On Here?

N’aww, sweet: microchip maker Nvidia agreed to buy microchip designer ARM in the biggest takeover deal the industry’s ever seen.

What Does This Mean?

UK-based ARM doesn’t actually manufacture its own microchips, but instead licenses its code to the likes of Intel, Samsung, and Huawei. That means you’re never far from one of their designs: your phone, your car, and your TV are all likely to be stuffed full of them.

The deal will see Japanese conglomerate SoftBank – the company's owner – receive an initial $12 billion in cash and $21.5 billion in Nvidia shares, turning it into one of the chipmaker’s biggest investors. And if ARM’s able to meet its future performance targets, the agreement’s collective value could rise even further – to as much as $40 billion.

Why Should I Care?

For markets: Business as unusual.
Nvidia’s generally focused on graphics processors for gaming equipment, but more recently, it’s found success expanding into chips for data centers, cars, and artificial intelligence. And investors have encouraged its ambition, driving the company’s market value to over $300 billion – 50% more than industry stalwart Intel (tweet this). Looks like they’re still keen too, given that Nvidia’s shares initially rose 9% after the announcement. That’s unusual: a seller’s shares tend to rise when a takeover deal’s struck – like SoftBank’s did, climbing 9% on Monday – but the buyer isn’t normally so lucky. Nvidia’s gain, then, could be a ringing endorsement of its overall expansion strategy.

The bigger picture: Craving approval.
Investors might be getting ahead of themselves: there’s no guarantee antitrust regulators will actually approve the deal, and Nvidia will need clearance from the European Union, the US, the UK, and China. The latter in particular could block the move if the US trade war heats up again, while Britain – which has introduced a new prime minister since SoftBank bought ARM in 2016 – reportedly wants to back homegrown champions to take on Silicon Valley. And that means it may be reluctant to part with the jewel in its chipmaking crown...

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2/3 Premium

New Tech Giants Float Too

What’s Going On Here?

Three software startups are among the companies set to sell new shares – or float – on the US stock market this week, and you might want to take advantage of just how busy it’s going to be.

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Finance crossed with cryptocurrency 🤞

Got crypto sitting around getting cyber-dusty in your cyber-wallet? Perhaps it’s time to deposit it somewhere – like, say, an interest bearing account. BlockFi have some of those…

See, they provide financial products for crypto investors. With one of their crypto interest accounts, you could earn up to 8.6% APY. So instead of sitting around with its feet up, your crypto could be hard at work. We think that might generate a better return than cyber dust.

As well as earning interest, with BlockFi you can trade crypto – sans fees – and borrow cash. All powered by blockchain technology, of course. Because BlockFi reckon that combining finance and blockchain will help their clients become financially empowered.

And they’re putting their money where their mouth is by offering up to $250 in crypto with each new account. No minimums, no lockups, and no crypto-nite – safety first.

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Fuse It Or Lose It

What’s Going On Here?

Gilead Sciences agreed to buy Immunomedics for $21 billion over the weekend in hopes they’ll combine their DNA to become the nucleus of the pharma industry.

What Does This Mean?

Gilead said it’d be borrowing $6 billion to help fund the purchase, and it’s easy to see why: the drugmaker is paying more than double Immunomedics’ pre-deal market value, which has already surged since the US approved its promising new breast cancer treatment earlier this year.

Gilead might be hoping the medication will eventually be approved for use in fighting other cancers too. And the company could certainly do with a big win: its sales fell 10% in the second quarter as pandemic-driven disruptions cut demand for some of its drugs. A bigger share of the $200 billion oncology market could be just what the doctor ordered...

Why Should I Care?

For markets: Bi(o)t(e)ch, please.
Immunomedics’ hefty sale price just goes to show how much investors in biotech firms can make if everything runs smoothly. But investing in the companies behind untested treatments is inherently risky: more than 85% of new drugs will fail on the way to winning approval, and the average journey from concept to creation takes a blistering 12 years. Those are the kind of stats that might make you think twice before investing...

The bigger picture: There’s always a longer name.
You only need to look at clumsy compound names like GlaxoSmithKline and Bristol Myers Squibb to see the pharma industry’s big into mergers. In fact, the Immunomedics deal comes just three months after Gilead was itself reported to be the target of pharma giant AstraZeneca (another merged company created in 1999 by Sweden’s Astra and Britain’s Zeneca). By bulking up, Gilead might be hoping to ward off those pesky suitors – for a little while, at least.

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💬 Quote of the day

“Cease to be a drudge. Seek to be an artist.”

– Mary McLeod Bethune (an American educator, stateswoman, and civil rights activist)

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🌍 Finimize Community

👨‍🎨 Find your inner artist

You might think you have to look like an artist to invest in art, with a beret on your head and a paint palette in your hand. But really, all you need is a little help from the investment experts over at Art Money and Alexis Hyde – the very same experts who will be speaking at our “How to Start Buying Art” event. They don’t even have berets.

🎙 The Crowdfund Revolution – 1pm UK Time / 8am New York Time, September 15th
📈 Playing It Safe: Portfolio Breakdown – 11am NYC Time / 4pm UK Time, September 15th
👨‍🎨 How to Start Buying Art – 2.30pm NYC Time / 7.30pm UK Time, September 16th
🙋‍♀️ Women & Money: 5.30pm Perth Time/ 10am UK Time, September 23rd

📚 What we're reading

Blue honeysuckle ice cream anyone..? (Atlas Obscura)
Unlimited information is messing with our heads (Scientific American)
Here’s why you’re feeling lonely (MIT Technology Review)

Finimize - 🌍 Nvidia versus the world

Today's big stories

ARM Candy

What’s Going On Here?

What Does This Mean?

Why Should I Care?

New Tech Giants Float Too

Finance crossed with cryptocurrency 🤞

Fuse It Or Lose It

What’s Going On Here?

What Does This Mean?

Why Should I Care?

👨‍🎨 Find your inner artist

Older messages

📈 Investors go back to college

😷 Coronavirus hurts insurers

🤢 Tesla's 30% crash

✈️ Morgan Stanley’s first-class upgrade

👶 Breathe, US jobs, breathe...

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