Nvidia Abandons $66 Billion Acquisition of Arm
The verdict is in! After a long wait, the NVIDIA-Arm deal falls through.
After a one-and-a-half-year effort to purchase Arm, Nvidia and SoftBank have officially terminated negotiations.
Logos for Arm and NVIDIA. Image used courtesy of NVIDIA
Nvidia faced mounting opposition from global regulators after talks went public—as governing bodies from the US, UK, EU, and China raised antitrust concerns over the pending deal.
Unsurprisingly, industry players including Qualcomm, Microsoft, and Google voiced their objections.
Despite reassurances, regulators feared that Nvidia would alter Arm's business model and distribution of its intellectual property (IP).
Additionally, customers and competitors worried that Nvidia would gain too much leverage on the open market. Engineers and enthusiasts have also met consolidation in the chip industry with ample skepticism.
Per CNN, the deal was slated to become the largest in history, even as Arm's values fluctuated following September 2020. SoftBank originally purchased Arm around 5 years ago—finally pulling the trigger on a potential sale with impressive profits insight. The move would've even topped Avago's 2015 acquisition of Broadcom.
Since announcing its failed purchase, Arm has replaced CEO Simon Segars with Rene Haas. Segars reportedly has stepped down due to personal reasons.
Rene Haas, the new CEO of Arm. Image used courtesy of Arm
Meanwhile, Haas is entrusted with bringing stability ahead of Arm's initial public offering (IPO) in the US. Arm has immense cash holdings and a healthy evaluation, signaling the viability of stock offerings.
Arm, established in 1990, has operated as a semiconductor design firm in the decades since. The company has also delved into software to accompany these custom chipsets.
Additionally, the company is a market IP leader. Its Cortex central processing unit (CPU) architectures power mobile devices and Internet of Things (IoT) products alike while boasting lucrative partnerships with Apple, Intel, AWS, and others following its official launch.
Though both companies have a massive imprint in today's industry, there's still more to unveil about this turn of events.
Since this is a developing story, tune in soon to learn more about the Nvidia-Arm deal in more depth.