Softbank Sells $14.8 Billion Of T-Mobile Shares To Pay Down Debt

Market sentiment turned more cautious overnight as virus cases in the US continue to swell. The US has seen a 25% jump in cases over the past week while some state in the south has seen spikes in cases much higher. Also weighing on sentiment is the US threat of over $3 billion in tariffs on European exports. Treasury Secretary Mnuchin mentioned negotiations over a phase 4 stimulus package, though no details were presented.

Dell considering options for its $50 billion stake in VMware
VMW

Dell Technologies
DELL
is considering several options for its 81% stake in VMware (VMW), including a potential spinoff, according to a report from WSJ. Dell’s stake in VMware is a result of its acquisition of EMC in 2016. Dell presently has a market value of around $36 billion while holding a $50 billion stake in VMware. Management at Dell wants to address this valuation gap with a potential monetization of its VMware stake. Sale proceeds would also help Dell whittle down its $48 billion of debt. Any sale cannot happen until later in 2021 for tax reasons. Dell is said to be keeping all options on the table, including acquiring the 19% of VMware it does not own.

Nvidia and Mercedes collaborating on automated driving architecture

Nvidia
NVDA
and Daimler AG’s (DDAIF) Mercedes-Benz are teaming up on in-vehicle computing and automated driving. In 2024 Mercedes will introduce a new automated driving architecture in its vehicles based on the Nvidia Drive platform from Nvidia. The platform will permit automated driving of routes and will have “numerous safety and convenience applications,” according to a release from the companies. Drivers will be able to add apps and subscriptions to the platform. No financial details were revealed.

Softbank on track to raise up to $20 billion trimming its T-Mobile stake

Softbank (SFTBY) sold $14.8 billion of T-Mobile (TMUS) shares to institutional investors at a 3.9% discount to the market. Softbank plans additional stocks sales to other large investors that could see its total from these sales top $20 billion. The sales are part of Softbank’s plan to raise $42 billion from asset sales as the company looks to pay down debt and fund stock buybacks. In a statement, SoftBank cited its “needs to further enhance its cash reserves” as the main reason for the transactions.

KKR has raised over $10 billion for its Asia Buyout firm

KKR
KKR
is raising funds for the biggest Asian private equity buyout fund ever formed. KKR is seeking $12.5 billion in total for the fund and has already passed $10 billion after 7 months of fundraising. KKR has been very active in Asia this year and has closed $3.3 billion in deals thus far in 2020. KKR expects to close its first round of funding this month.

Google is considering cancelling Hong Kong as destination for its high-speed data cable

Given the recent developments in Hong Kong, Google
GOOGL
 told the Financial Times that it is considering removing Hong Kong as one of the destinations for the planned high-capacity data cable between the US and Asia. The cable is known as the Pacific Light Cable network and is planned to connect the US, the Philippines, Taiwan, and Hong Kong with an 8,000-mile cable under the Pacific Ocean. Google said the US government has warned it against connecting the cable to Hong Kong because of security concerns. 

Impossible Foods CEO says meat will disappear within 15 years

In an interview on CNBC the CEO of Impossible Foods (FOOD) said he believes the meat industry will be obsolete in 15 years. He said the transformation to plant-based products is already under way, stating “…I think people are increasingly aware plant-based products are going to completely replace the animal-based products in the food world within the next 15 years.” He said his products have the same protein quality as meat and is the clear winner from a health standpoint.