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Nvidia and SoftBank jointly announced: Terminate the ARM transaction and seek a separate listing

Sina Technology News Beijing time on the afternoon of February 8, according to reports, NVIDIA and SoftBankThe group jointly announced today that the two parties have decided to terminate the previously agreed acquisition of ARM.

The companies said that despite good faith efforts to close the deal, they agreed to terminate the agreement due to significant regulatory challenges. Next, ARM will begin preparations for a public offering (listing).

Regarding the decision, Nvidia founder and CEO Jensen Huang said: “ARM has a bright future, and we will continue to support ARM’s licensing business for decades to come. In the computing market, ARM is at the heart of industry development. .Although we cannot be a company, we will work closely with ARM. A series of major investments have positioned ARM to: extend the reach of ARM CPUs from client computing to supercomputing, cloud, artificial intelligence and robotics. I predict that ARM will be the most important CPU architecture in the next decade.”

At the same time, SoftBank Group also announced today that it will cooperate with ARM to begin preparations for ARM’s public offering in the fiscal year ending March 31, 2023. SoftBank Group believes that ARM’s technology and intellectual property will continue to be at the center of the development of mobile computing and artificial intelligence.

Masayoshi Son, Chairman and CEO of SoftBank Group, said: “ARM has become a center of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, IoT .We Will seize this opportunity to start preparing to bring ARM to market and make more progress.

Unshared News also said: “I want to thank the talented team at Nvidia for trying to bring these two great companies together and wish them every success.”

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Although the deal was terminated, SoftBank Group will retain the $1.25 billion upfront paid by Nvidia, according to a previous acquisition agreement between the two companies. The charge will be recorded in SoftBank’s fourth-quarter earnings report in the form of profits. At the same time, Nvidia will retain the ARM license for 20 years.

In September 2020, Nvidia reached an agreement with SoftBank Group to acquire ARM from SoftBank for about $40 billion. If the deal goes through, it would be the largest semiconductor deal ever in dollar terms and would create the largest chip company in the West and reshape the global chip industry.

To this end, the deal has come under scrutiny by regulators in many countries, with the UK and EU investigating the most.

Regulators generally believe that a combined Nvidia will have the ability and incentive to harm the market competitiveness of its competitors. For example, Nvidia could restrict the use of ARM intellectual property and compromise interoperability between related products.

It was reported in late January that Nvidia executives were no longer pinning their hopes on completing the $40 billion acquisition. At the same time, SoftBank has also begun to prepare for the follow-up work, that is, to make ARM public as an alternative to the failed acquisition.

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