Jan 26, 2022 11:34:00

The possibility that NVIDIA's acquisition of Arm, a semiconductor company under Softbank, will disappear

It is reported that NVIDIA may give up the acquisition because there are many dissenting opinions and negotiations do not proceed in the case of NVIDIA acquiring Softbank's semiconductor company Arm for

about 4.2 trillion yen. .. It has not been officially decided, and both companies are continuing to work on the authorities, but Softbank is also moving with an initial public offering (IPO) of Arm in mind.

Nvidia (NVDA) Quietly Prepares to Abandon $ 40 Billion Arm Bid --Bloomberg
https://www.bloomberg.com/news/articles/2022-01-25/nvidia-is-said-to-quietly-prepare-to-abandon-takeover-of-arm

Nvidia preparing to abandon Arm takeover, Bloomberg reports
https://www.cnbc.com/2022/01/25/nvidia-preparing-to-abandon-arm-takeover-bloomberg-reports.html

Nvidia reportedly preparing to abandon $ 40bn Arm acquisition • The Register
https://www.theregister.com/2022/01/25/nvidia_arm_abandon_report/

Arm was founded in 1978, including its predecessor company. Became a member of the SoftBank Group in 2016

and split the IoT business in July 2020. And in September 2020, the sale to NVIDIA was announced.

Softbank sells Arm to NVIDIA for about 4.2 trillion yen-GIGAZINE

However, there were many concerns that the acquisition of Arm by NVIDIA, which is also a semiconductor maker by developing the GPU 'GeForce' series, would lead to a technology monopoly.

'NVIDIA's acquisition of Arm will create a technology monopoly,' said Arm co-founder-GIGAZINE

Approval by the United States, EU, United Kingdom, and China is required to close the transaction, but the Federal Trade Commission in the United States has filed a lawsuit seeking an injunction against the acquisition.

Federal Trade Commission filed suit for NVIDIA's injunction to buy Arm-GIGAZINE

On the other hand, in response to the acquisition of Arm by the American company NVIDIA, China thinks that the supply of technology to its own country will be stagnant and will have a large impact on domestic emerging manufacturers that rely on Arm, 'If others Even if it approves, it will prevent the acquisition. '

In addition, Qualcomm, Microsoft, Intel, and Amazon have provided regulatory agencies with materials that would make the transaction unsuccessful.

It seems that NVIDIA abandoned the acquisition of Arm because of this 'resistance' and the acquisition approval process did not proceed at all. According to news site Bloomberg, NVIDIA has already told Softbank that 'the transaction is unlikely to be completed', and Softbank is also considering Arm's IPO.

However, the transaction has not been broken yet, and NVIDIA and Softbank are continuing to work on the authorities.

In addition, Softbank and Arm will receive $ 2 billion (about 228 billion yen) paid by NVIDIA at the time of negotiation and a split fee of $ 1.25 billion (about 142 billion yen) regardless of whether this transaction is completed or not. You have the right to do so.