Nvidia intends to abandon the acquisition of Arm: SoftBank considers selling Arm through an IPO

According to Bloomberg, Nvidia is preparing to abandon the $40 billion acquisition of chip design company Arm. Subject to intense scrutiny by regulators and strong opposition from competitors, Nvidia was forced to adjust its original acquisition timeline.

Bloomberg said Nvidia is informing its partners that they do not expect the deal to pass.

It is also reported that Arm's owner, SoftBank Group, is "stepping up preparations" to sell Arm through an IPO (initial public offering). For SoftBank, this could be another advantageous way to sell Arm.

While NVIDIA and SoftBank have still publicly committed to the deal, Bloomberg noted that the two sides have yet to make a final decision. Considering that the acquisition has long been significantly negatively affected by geopolitical factors, it is not surprising that such rumors have emerged.

Arm is perhaps the world's foremost chip design company today. Arm's neutrality strategy of designing chips for many companies around the world has been a huge success. Despite Nvidia's commitments, regulators remain concerned that the acquisition could mean an end to that stance, and Arm will gradually align with U.S.-based Nvidia's interests in the future, stifling the development of rival technology.

That concern prompted regulators in the U.K., the European Union and the U.S. to review the deal, and the U.S. Federal Trade Commission even filed a lawsuit to halt the acquisition. All of this work takes months to come to a conclusion, which invisibly extends the already lengthy acquisition period.

Since its initial announcement, the acquisition has now been going on for almost two years. In addition to Western regulators, China has concerns about this.

For now, though, Nvidia and SoftBank stand on a line that says, "We're hopeful, let's see what happens." ”

A SoftBank spokesperson told Bloomberg: "We remain hopeful that this deal will be approved." ”

An Nvidia spokesperson also said: "We will continue to uphold the view detailed by the Company in its latest regulatory filing that this transaction will bring opportunities to accelerate Arm, promote competition and innovation." ”