Nvidia arm deal burst
The 66 billion US dollar deal between Nvidia and Arm does not materialize.
As reported by the Financial Times and Reuters, SoftBank Group Corp, to which Arm belongs, is foregoing the takeover by Nvidia. This due to regulatory hurdles. Regulators in the U.S., U.K. and EU, as well as Nvidia's competitors, have been fighting the deal.
At $66 billion, the deal would have been the largest in the chip sector to date. It was announced in September 2020.
Japanese tech group Soft Bank will receive compensation from Nvidia in the amount of $1.25 billion. Arm is to go public before the end of the next fiscal year in March 2023. The value at IPO is estimated at around 80 billion US dollars. It is not yet clear where Arm will go public.
The collapsed deal also has personnel consequences. At Arm, Rene Haas replaces the previous CEO Simon Segars with immediate effect. Haas was previously head of intellectual property.
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