Nvidia abandons deal with ARM
- Company discusses with its partners that it does not expect the deal to close.
- ARMs current owner – SoftBank looks at IPO for the business
Softbank and Nvidia agreed to terminate the deal because of “significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties,” says SoftBank.
Nvidia has told partners that it doesn’t expect the transaction to close, according to one person, who asked not to be identified because the discussions are private. SoftBank, meanwhile, is stepping up preparations for an Arm initial public offering as an alternative to the Nvidia takeover, another person said. This deal was supposed to be the biggest semiconductor deal.
SoftBank will keep a $1.25 billion breakup fee.
Arm CEO Simon Segars has been replaced by Rene Haas.
Rene Haas says Arm’s technology is becoming more widely adopted. “We are now becoming the de facto standard in cars. Some have 10 to 20 chips, some even have as many as 30 to 40 chips,” he says.
