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Nvidia's ARM takeover could come to an abrupt end following regulatory pressure

The regulatory arm-twisting may have finally gotten to Nvidia
The regulatory arm-twisting may have finally gotten to Nvidia (image via Nvidia)
A new report from Bloomberg says that Nvidia will abandon its prospects of taking over SoftBank-owned ARM. However, the official announcement could come later as both companies are still optimistic about the deal and want to convince regulators about its benefits.

Nvidia's much-hyped takeover of ARM was doomed from the get-go, thanks to a mountain of regulatory hurdles from the US FTC, European agencies and China. Private companies like Qualcomm expressed their displeasure, too. A new report from Bloomberg says that Nvidia plans to bench its ARM takeover plans soon. However, it could be a while before Nvidia makes an official announcement, as it is still trying to appease regulators.

The Bloomberg report adds that the acquisition's uncertain nature has created factions within Nvidia and SoftBank (ARM's current owner). One side thinks that the deal is a waste of resources while the other is confident about its success. SoftBank still gets to keep US$2 billion, though, even if the transaction doesn't go through. While that is not an insignificant amount, it still pales in comparison to ARM's US$40 billion price tag.

Softbank wants to float an IPO for ARM, which will undoubtedly attract many investors given that a lot of the world's electronics run on ARM's technology. That is also why the industry was vehemently against Nvidia's takeover. Nothing seems to be sure yet, but the chances of the acquisition going through appear slimmer by the day.

Source(s)

Bloomberg (paywalled)

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2022 01 > Nvidia's Arm takeover could come to an abrupt end following regulatory pressure
Anil Ganti, 2022-01-25 (Update: 2022-01-25)