NVIDIA eyeing takeover of ARM?

Posted on Wednesday, July 22 2020 @ 21:30 CEST by Thomas De Maesschalck
NVIDIA logo
Earlier this month, a rumor emerged that SoftBank was considering a sale or IPO of its ARM holding. The Japanese firm bought the British chip designer for $32 billion in 2016 and is reportedly in the early stages of reviewing its options.

Now there's a fresh rumor from Bloomberg that NVIDIA approached SoftBank about a potential acquisition of ARM. Sources familiar with the matter indicate other potential bidders could also emerge, and that it's possible that no deal will be reached.

While ARM is an interesting takeover candidate, not a lot of companies can afford it, and a deal is also complicated by antitrust issues:
Any customer trying to acquire Arm would trigger regulatory scrutiny. Other companies using its technology would likely oppose a deal and demand assurances that a new owner would continue to provide equal access to Arm’s instruction set. Such concerns resulted in a neutral company -- SoftBank -- buying Arm the last time it was for sale.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



Loading Comments