Nvidia's acquisition of ARM has lasted for more than 2 years, and the opposition from various countries has become louder and louder. At first, the U.S. giant Nvidia would also whisper, humbly accept the statements of regulators in various countries, and then respond.
Unfortunately, things are getting bigger and bigger, especially in the United Kingdom, where ARM is located, and its anti-competition regulators are increasingly suspicious of the acquisition, and they have not given a final answer. Nvidia couldn't bear it and decided to strike first, joining forces with ARM and the British regulator to "tear it up".
On January 11, local time, Nvidia issued a written statement, first forcefully expressing the reasons why the transaction should be released, and then increasing its horsepower to condemn the British regulator, ignoring ARM's own financial situation and exaggerating ARM's market position.
To put it simply, Nvidia made this move to warn the British official that the "pearl of science and technology" company you cherish, their economic situation can not tolerate your delay again and again, and they are in urgent need of external financial assistance. As for your concerns about creating a monopoly in the market, that may be over-worrying, and according to ARM's market position, it may not be that level.
However, the reason Nvidia is so "monkey rush" is because the deadline they set for this deal (before March 2022) is approaching. If this deadline is missed, it is estimated that the amount NVIDIA will have to pay may increase again.
It is understood that Nvidia and SoftBank Group previously agreed that the payment method is that its own stock plus cash, the total value is about $40 billion. However, from 2021 to now, NVIDIA has taken advantage of the east wind of the meta-universe, coupled with the power of the semiconductor hardware business, the company's stock is becoming more and more valuable.
In August 2021, according to the performance of Nvidia's stock price (about $200 per share) at that time, SoftBank's assets will appreciate by about $10 billion. As of press time (January 12, 2022), NVIDIA shares have reached a high of $274. In addition, another tricky situation facing Nvidia is that not only the United Kingdom has "tricked" them, but also the regulators in the United States and the European Union have also launched investigations into the transaction.
Wen | Liao Lisi | Zeng Yi reviewed | Lu Shuoyi