NVIDIA terminates ARM acquisition from SoftBank as former NVIDIA Vice President becomes ARM's CEO
NVIDIA has announced in a press release that it has terminated its acquisition of ARM, currently owned by SoftBank. Announced in late 2020, the acquisition would have been worth US$40 billion, one of the largest in the semiconductor industry's history. For reference, SoftBank acquired ARM in 2016 for US$32 billion.
As expected, NVIDIA has abandoned its ARM takeover because of regulatory pressures. Specifically, NVIDIA states that it and SoftBank have:
...agreed to terminate the Agreement because of significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties.
Still, Softbank will retain the US$1.25 billion that NVIDIA prepaid if the acquisition failed. Apparently, Softbank will record the pre-payment as a profit in the fourth quarter, while NVIDIA will retain is 20-year ARM license.
Simultaneously, SoftBank has announced that it plans to publicly offer ARM 'within the fiscal year ending March 31, 2023'. Additionally, ARM has replaced its chief executive, Simon Segars, who has remained in the role since 2013.
Segars joined ARM in 1991 as its 16th employee, a year after its inception. Rene Haas succeeds Segars, ARM's former President of its Intellectual Property Group. Incidentally, Haas worked at NVIDIA as its Vice President and General Manager of its Computing Products Business Unit between 2006 and 2013.