The acquisition of arm through the NVIDIA Was canceled. The deal between the companies had been announced in september 2020 and was rated at $40 billion. But, after several difficulties in regularizing the movement, the transaction failed. The information comes from a report quarterly of SoftBankcurrent owner of armand was initially released by the Financial Times.
Both companies have already confirmed the termination of the deal and, in official notea NVIDIA points the “significant regulatory challenges that prevent the consummation of the transaction despite the parties’ good faith efforts”as responsible for canceling the purchase.
The statement is a clear reference to the various barriers imposed by regulatory bodies in Europe, the United Kingdom and the United States, which indicated a conflict of interest in the transaction. As Arm is one of the largest suppliers of technology for processors, the acquisition and consequent control of the arm could give to NVIDIA an advantage in this segment of the industry.
In the announcement of the purchase, on September 13, 2020, the companies stated that the arm would still maintain its open licensing model and neutrality with existing customers, but with no guarantees that this would be executed, the deal did not materialize.
Change of Arm’s business model
Within the official note of the companies, the SoftBank Group Corp (SBG), revealed that it will now begin preparations for an initial public offering of shares (IPO) gives arm in the fiscal year ending March 31, 2023.
Under the terms of the previously announced agreement, the SBG keep US$ 1.25 billion that had already been paid by NVIDIA by the end of the business. According to SoftBank, the amount will be recorded as profit in the fourth quarter, and the NVIDIA will keep your license arm of 20 years.
CEO exit at Arm
After the failure of the deal with NVIDIA and the future entry into an initial public offering of shares, Simon Segars, CEO of Arm, will step down. As reported by the TechCrunch, Rene Haaspresident of Arm’s IP group, will take over the post left by segarswho will retire.
“He decided that, at this stage in his career, the time and energy it took to take the company public and everything around it was not something he wanted to sign off on.”said haha about the output of Simon Segars. “Then he will retire. I will take his place”.
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