NVIDIA has started preparing partners for the failure of the
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NVIDIA has started preparing partners for the failure of the deal to buy Arm if the rumors are true

NVIDIA first announced on September 13, 2020 that it wanted to buy the British developer of Arm processor architectures from the Japanese SoftBank. The parties expected to agree and close a deal in a year and a half, but it was mired in antitrust investigations. Rumor has it that NVIDIA has already started preparing partners for the possibility that the deal with Arm will go through.

Image source: NVIDIA

Image source: NVIDIA

At least such information is disseminated with reference to its own sources Bloomberg. Officials from NVIDIA and SoftBank have publicly denied such rumors and insisted on continuing to work on the deal. The former has already made a second advance of $2 billion, and if the deal doesn’t go through, SoftBank has every right to withhold about $1.25 billion in compensation from NVIDIA.

As you know, this deal was opposed by many, from Arm’s founder to the US Federal Trade Commission. Chinese antitrust authorities have also tended to block the deal, according to Bloomberg sources, but so far the circumstances are such that their decision may not be decisive. A number of companies that were both Arm and NVIDIA customers or competitors of both also lobbied against the deal. Bloomberg lists Qualcomm, Microsoft, Intel and Amazon as “secret critics”.

Disagreements over the expediency of the deal even caused a split within NVIDIA, according to the source. SoftBank, which currently owns Arm shares, will be forced to go public if its deal with NVIDIA falls through. Up until 2016, Arm was just a public company until it was bought by SoftBank for $32 billion. Initially, NVIDIA was willing to pay $40 billion for the same assets, and now SoftBank officials are concerned that the moment for entering the public stock market has come slipping away from lengthy negotiations for a deal with NVIDIA. We emphasize that all information about fluctuations in the ranks of the participants in the transaction is unofficial, and both companies deny that they have defeatist feelings.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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