Nvidia was set to acquire Arm from the SoftBank Group for a whopping sum of 66 billion US Dollars. However, this deal saw scrutiny from various regulators and has apparently collapsed as of right now.
According to sources close the matter (Via ArsTechnica), Team Green’s deal with the Japanese multinational conglomerate has collapsed due to regulators in the US, UK, and EU raised various concerns regarding the possible market effects it will have on rivals within the semiconductor industry. Some of these concerns included anti competitiveness and even national security risks, while the known graphics card maker also faced a lawsuit by the FTC (Federal Trade Commission) last year.
For those unaware, this deal was expected to be the largest ever in the chip industry and would have had Nvidia acquire the company behind ARM’s technology that powers most smartphones across the globe. While companies like MediaTek and others supported the acquisition, others including Qualcomm and Microsoft had objected to the purchase. The report further added that SoftBank will be receiving a fee of up to 1.25 billion US Dollars despite the deal collapsing and is now planning on putting up Arm on an initial public offering.
This will reportedly take place before the end of this year as per one of the people close to the matter. SoftBank might now list Arm in New York as Nvidia reportedly abandoned this deal earlier this week on Monday. This is still an unconfirmed report so take it with a pinch of salt for now, and stay tuned for more updates.
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