The way back on September 2020, Nvidia announced his intention to buy an arm of a semiconductor manufacturer for $ 40 billion. Fast forward almost one and a half years later and now there is news that Nvidia might withdraw from the acquisition. While no company has confirmed the assumption that Nvidia is getting cold, it will not be surprising given that the acquisition has faced supervision and even lawsuits from supervisory bodies.
Bloomberg reported today that Nvidia can get ready to drop the planned arm acquisition, according to the unnamed source familiar with this problem. Today’s report painted a rather gloomy image for acquisitions, noting not only the opposition regulation of Nvidia faced, but also the opposition from the main players in this industry, including Microsoft, Qualcomm, and Intel.
While Nvidia initially promised the arm would remain neutral if the acquisition passed, the competitors were not sure it would happen. This is a legitimate concern, because the arms supply processors for many industries, to the point where the ARM processor is almost unavoidable. Having Nvidia – a company that competes in some of the industries – buy manufacturers everywhere like arms that might give many of the main players.
The agreement also faces the share of regulatory skepticism too. In December 2021, the United States Federal Trade Commission filed a lawsuit against Nvidia to prevent the merger, on the grounds that if Nvidia took over, it would affect the semiconductor industry. This agreement also faces the supervision of the regulator in Europe, and the Bloomberg report today claims that China is ready to stop the merger if other regulators do not.
All things considered, Nvidia had a difficult climbing battle in front of him if he wanted to press with this acquisition. Today’s report states that the original Nvidia timeline from 18 months to complete the acquisition seems impossible now, and notes that the original agreement between the two will expire in September 2022 if it is not approved.
Apart from the opposition, Nvidia and ARM still appeared outwardly believing that the agreement could be passed, with a spokesman for both companies that published optimists – if not interesting – a statement to Bloomberg when he won comments. “We continue to hold a detailed view in submission of our latest regulations – that this transaction provides an opportunity to accelerate arm competition and increase competition and innovation,” said Bob Sherbin Nvidia, with a spokesman for Softbank (owner of the arm) just said, “We remain hope that the transaction will be approved. “
However, behind the scenes, we now hear that Nvidia “secretly prepares to leave the” agreement. We will see what is happening, but given all the pushback the regulations we have seen for the past year and change, Nvidia may have no choice but to drop the acquisition and keep their hands from the semiconductor giant.
