Oracle Wins TikTok Bid, Nvidia Buys Arm For $40bn

The weekend was packed with M&A news, with three deals all likely to be well north of $10bn apiece reported. First up, Oracle (ORCL) has reportedly won the bidding to buy TikTok’s US operations, with the Microsoft-Walmart (MSFT, WMT) joint offer being rejected. According to The WSJ, the deal may not take the form of an outright sale, with Oracle instead set to become TikTok’s “trusted tech partner” in the US. More details are likely today, as The White House it yet to comment on whether the deal has secured its approval.

Elsewhere, Nvidia (NVDA) is buying chip designer Arm Holdings (ARMH) from SoftBank (SFTBY) for $40bn, which the Japanese investment firm took private when it initially acquired the British firm in 2016. Arm designs architecture is used in mobile phone chips and is set to benefit from Apple (AAPL) shifting its computers from Intel (INTC) chips to an Arm design. 

Last up, Gilead Sciences (GILD) plans to acquire biopharmaceutical company Immunomedics (IMMU) for $21bn, adding to its cancer treatment portfolio, including a new breast cancer drug that received regulatory approval in the US in April.

The deals buoyed stocks in Asia, with the Japanese Nikkei and Hong Kong’s Hang Seng both higher by 0.7%, while US futures were pointing upwards ahead of their open later today.

Tech, energy names sink stocks in bumpy week

Tech stocks and energy names dragged all three major US stock indices into the red last week, with the Nasdaq Composite falling hardest, losing 4.1%. The slump took the Nasdaq into correction territory on Tuesday, as the index has fallen more than 10% from its record high set less than a week earlier. Tesla closed the week 10% lower, Amazon fell 5.4% and Apple was down 7.4%, as investors questioned the fragility of the tech sector’s recent runup and opted to take profits. The price of crude oil dropping below $40 once more was another source of pain in the markets. Oil giants Chevron (CVX) and Exxon Mobil (XOM) both lost more than 5% over the course of the week, while exploration names such as Occidental (OXY) and Apache (APA) fell by double-digits.

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