Nvidia must give up the purchase of ARM due to obstacles in the approval of the deal

Deepak Gupta
Deepak Gupta January 26, 2022
Updated 2022/01/26 at 6:37 AM

THE Nvidia, manufacturer of GPUs and hardware, must give up the purchase of 40 billion dollars from ARM. The reason would be the series of barriers and difficulties imposed by the regulators, in addition to the various criticisms of competitors such as Google, Microsoft and Qualcomm — customers of ARM who called for an antitrust investigation into the acquisition. The information is from Bloomberg News.

Nvidia has until March to complete the purchase

According to the news outlet’s report, the SoftBank, current owner of ARM, is starting the legal procedures for its company to carry out an initial public offering of shares (IPO), which would lead to processor manufacturer to be a company listed on the stock exchange. That way, it would be easier for another company to buy the ARM gives softbank.

Source: Disclosure/Nvidia.

Last year, when it was announced that the Nvidia delayed the delivery of documents to the regulatory bodies of the European Commission, it was speculated that the company would not be able to finalize the purchase of the ARM in the first deadline of March 2022. The Nvidia it said that the purchase would be completed by January of this year, but so far this has not materialized. After March, either party can cancel the $40 billion deal. If that happens, Nvidia will pay $1.25 billion to the company. SoftBank. THE Nvidia can also ask for the activation of a clause to extend the purchase until September 2022.

Nvidia and SoftBank say everything is fine

As much as rumors indicate that the plans of the two companies have already changed, publicly Nvidia and SoftBank they say everything is ok. The point is that even behind the scenes there is uncertainty between the parties about which direction to take. As for the regulators, the purchase of ARM through the Nvidia could undermine the chipmaker’s neutral stance and mobile SoCs. Qualcomm, Microsoft and Google are some of the customers of ARM who have taken a stand against the deal, echoing the regulators who fear that the Nvidia block access to new generations of chips.


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Via: adrenaline Source: Bloomberg

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