I could not figure out if „cash“ means literally cash or figuratively cash in the sense of “no trade in shares”.
Will there be a truck full of paper money or not?
Will there be a truck full of paper money or not?
(Electronically)
This deal is framed as IP transfer and talent transfer without owning the full company. Probably to skirt anti trust, among other things.
If not, the owners are likely liable to be sued for "selling in effect" without paying equity holders.
Presuming the company becomes a defacto subsidiary of Nvidia (even if not legally so)
My guess, without researching it, is they will compensate existing equity holders to avoid that possibility. I mean the valuation multiple is enormous, it's worth it simply to derisk the legal aspect.