Nvidia Arm Deal of $66 billion Is Officially Dead

Graphics chipmaker Nvidia has stopped its acquisition from Softbank’s Arm because of the concerns of regulators and Arm’s current customers. In the latter half of the year, 2020 Nvidia declared that it was going to buy Arm through SoftBank for a total of $40,000 in cash as well as a stocks-based acquisition. The shares of Nvidia have since risen to a value that makes the acquisition around $66 billion at present.

In January 2022, however, it was clear that Nvidia was already looking at pulling out of the agreement. Nvidia probably backed from the acquisition under regulatory pressure. UK lawmakers began looking into the acquisition in the month of November 2021 in response to security concerns for national security.

Within the United States, the Federal Trade Commission sought to block the agreement in December 2021 due to fears that it could impede innovation and hinder competitiveness in the market for chips. As of today, according to The Financial Times, the deal has been concluded. According to people who are familiar with the situation, Softbank is seeking to remove Arm by way of the initial public offer prior to the date of 2022’s expiration. Sources say that SoftBank prefers the listing of Arm with the city of New York and will seek to defy nationalist pressure.