Nvidia Canceling Its $40 - Billion Arm Acquisition: Report
Nvidia is all set to walk away from the $40 billion Arm acquisition that was earlier fixed with the British government.
The Nvidia arm deal has faced many hurdles of regulations related to the deal with the US Federal Trade Commission suing to block it in December.
Highlighted Facts
- Nvidia arm-deal has faced many obstacles that were all related to the regulatory.
- The value of the stock-heavy deal for arms has risen.
- The arm had contemplated an IPO.
Read More: The US Will Release Chip Shortage Study Details Amid Funding Push
The matter of canceling the deal between Nvidia and the British government is well socialized in public as Nvidia is preparing to abandon its purchase arm from SoftBank group after offering about $40 billion for the British Company in 2020. The news was reported by Bloomberg.
The one chipmaker of the US has told the partners that it does not expect the deal to close in a time when SoftBank is preparing to launch its Initial Public Offering (IPO) the of the arm, revealed by reporter.
The spokesperson of Nvidia said that the company is still believing the acquisition “provides an opportunity to accelerate arm and boost competition and innovation,” neither the arm nor SoftBank has made a single comment over the matter even after requesting by Reuters.
The deal between both has faced many curbs and still is investigated by many of the regulatory bodies as US Federal Trade Commission sued to block it in December. The action for boycott is also under the scrutiny of British and EU regulators.
The new head of the US Justice Department Antitrust Division, Jonathan Kanter said in a statement that he would seek to stop the merger that poses Anticompetitive concerns rather than striking deals for concessions that would allow the transaction to close.
Since it was announced in September 2020, the stock-heavy – deal for an arm has risen in value since the announced date and the reason behind such surge is because of the surge in shares of Nvidia sparked by strong growth of the main data center–focused chip business.
The CEO of Arm said the last year in July that the company has contemplated an IPO but that would hurt its ability to expand and invest.
