Report claims NVidia is set to abandon its $40 billion interest in the acquisition of Arm. The company has had difficulty in getting regulatory approval. It is also reported that Softbank will now go after an initial public offering (IPO) for the chipmaker which is estimated to be worth up to $80 billion.
NVidia Set to Drop Its Interest in Acquiring Arm
On Tuesday, Bloomberg reported that the tech company NVidia is getting set in abandoning its acquisition of arm which is a chipmaker company after it struggled to get its regulatory approval. The company however had earlier told its partners that it does not expect the $40 billion deal to close.
The outlet also noted that a final decision is yet to be made and that the companies are still in negotiations with regulators.
SoftBank to Sell Arm to NVidia
Softbank which is a Japanese tech giant in September of 2020 agreed to sell Arm to NVidia as part of the largest deal ever by the chip industry. Events however led the US federal trade commission to sue to block the takeover by NVidia. The trade commission argued that it would harm competition, and the UK government also opened an investigation in regards to the deal.
A spokesperson from Softbank on Tuesday in a statement emailed to CNET said, “We remain hopeful that the transaction will be approved.”
What NVidia Has To Say Regarding the Report?
In comparison to chipmakers like QUALCOMM and Intel, Arm isn’t as known in the industry, but the works of the company, however, lies behind the processors inside many of the mobile phones in the world due to the fact that it licenses chip designs and related technology to various companies such as apple, QUALCOMM, and Samsung.
A spokesperson from NVidia noted that the company continues to hold the views expresses in its latest regulatory filings and that the acquisition “provides an opportunity to accelerate Arm and boost competition and innovation.”