NVIDIA and SoftBank Cancel Arm Acquisition Due to Regulatory Roadblocks
NVIDIA and SoftBank officially end their planned $40 billion acquisition of Arm Limited due to significant regulatory challenges. SoftBank now prepares to take Arm public while NVIDIA retains a 20-year license to use Arm's technology.
NVIDIA and SoftBank Group officially terminate their planned acquisition of Arm Limited due to significant regulatory challenges. Despite good faith efforts to complete the transaction, the companies agree to walk away after facing insurmountable pushback from global regulators. As part of the termination agreement, SoftBank keeps the $1.25 billion prepaid by NVIDIA and records it as profit.
Following the collapse of the deal, SoftBank immediately starts preparations for a public offering of Arm within the fiscal year ending March 31, 2023. The company believes Arm's technology remains at the center of mobile computing and artificial intelligence development, positioning the chip designer for strong independent growth in cloud computing, automotive, and the metaverse.
Although the acquisition falls through, NVIDIA continues to support Arm as a proud licensee and plans to partner closely with the company. NVIDIA retains its 20-year Arm license, ensuring ongoing access to the architecture that CEO Jensen Huang expects to be the most important CPU architecture of the next decade.