SoftBank $ 66bn sale for chip band Arm at Nvidia is falling

SoftBank’s $ 66bn sale of Arm from the UK to Arm Nvidia crashed Monday after regulators in the US, UK and EU complained about its impact on competition in semiconductor companies around the world, according to three people who are directly aware of the business.

The partnership, the largest in the chip sector, would allow California-based Nvidia to lead a company that specializes in cardiovascular technology across the world. A few Big Tech companies that rely on Arm chip design, including Qualcomm and Microsoft, opposed the purchase.

SoftBank receives a fine of up to $ 1.25bn and wants to lower Arm through a series of public offerings within a year, said one resident.

The failure led to a leadership crisis at Arm, with Simon Segars chief executive replaced by Rene Haas, the company’s chief intelligence officer, the man added.

The collapse of the agreement eliminates SoftBank from a major risk that it would have benefited from Nvidia’s rise in prices.

Currency trading and stocks were valued at up to $ 38.5bn when they were announced September 2020. But the price rose as Nvidia shares soared, reaching a record $ 87bn last November.

In the UK, where politicians see Arm as a global asset, interest should change if the company is to be registered on the global market. A British competitive comment The agreement was extended at the end of last year to include national security principles.

However, people close to SoftBank said the group loves the idea of ​​signing Arm in New York and will try to resist pressure from the state. The U.S. markets are subject to high prices for technological pricing, albeit at very recent changes, as well as UK technical advisors. soon seedlings changes to the design of the list to make London more beautiful.

Nvidia decided to stop looking for Arm at a board meeting earlier Monday, says an expert in the negotiations. Arm’s search led to a fortune-telling attempt to find the final competition around chip players like Intel and AMD, and he was inspired by the approach from SoftBank a Japanese company that decided to leave the business.

Jensen Huang, CEO of Nvidia, hopes to use Arm’s processor design to boost its company’s growth. data centerwhere its graphics processors have become important tools for machine learning.

However, some of the Big Tech companies that rely on Arm design on their chips have argued that Nvidia has acquired an unfair advantage by having the first technical rights to Arm, injuring the competition.

Nvidia offered to competitors to continue selling some Arm customers after the contract was terminated. However, the UK’s Competition and Markets Authority says it does not believe such methods can work, and the US Federal Trade Commission has set up a communications system. in-depth research at the end of last year.

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