Arm considers IPO if NVIDIA deal becomes a bust

Posted on Monday, Jul 26 2021 @ 11:39 CEST by Thomas De Maesschalck
About ten months ago, NVIDIA unveiled its audacious plan to take over the British chip designer Arm for $40 billion. The latter is currently owned by Japanese holding company SoftBank and NVIDIA's plan definitely kicked up a lot of dust.

It was a largely unexpected move and a lot of analysts are doubtful about whether it will get the green light from regulators around the globe. NVIDIA has found a couple of companies that support the deal, but in general, the plan received a lot of criticism from various NVIDIA competitors as well as companies that use the Arm ecosystem.

SoftBank considers IPO for Arm

Should the $40 billion deal face insurmountable challenges, or take longer than expected, SoftBank will take a different path. According to a new report from Telegraph, a public offering is a possibility should NVIDIA fail to takeover Arm. Telegraph claims Arm Holdings may pick New York for this potential IPO.

ARM CEO Simon Segars on the other hand denied his company is considering an IPO and said Arm is 100% focused on closing the deal with NVIDIA.

Telegraph also wrote that NVIDIA still needs to submit the necessary paperwork to EU antitrust authorities. This process has presumably been delayed to September as the EU summer holidays start today. A verdict from the European Commission isn't expected until March 2022.

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.

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