After having caused a stir with the attempted acquisition of Arm worth USD 40 billion, now Nvidia seems to have given up if the acquisition cannot continue.
The reason is, not long after Nvidia announced the planned acquisition of Arm, they were bombarded by various investigations and pressure from various parties, both from governments of various countries and companies that will be affected by the acquisition.
Reported by Bloomberg, Wednesday (26/1/2022), Nvidia began to explain to its partners that they had no hope that the acquisition could continue. On the other hand, SoftBank -- Arm's current owner -- is already preparing to conduct an initial public offering (IPO) alias selling Arm's shares to the stock market, which is an alternative move for SoftBank that remains profitable.
Even so, Nvidia and SoftBank remain committed -- at least publicly -- in the acquisition, as no final decision has been announced. Arm's acquisition is opposed by many because the company is arguably the most important chip design in the world.
"We hope that this transaction will be authorized," said a SoftBank spokesman. An Nvidia spokesperson said, "This transaction provides an opportunity to accelerate Arm and increase competition and innovation."
Although Nvidia promised the acquisition would not affect Arm's business model, namely "leasing" its chip designs to other companies, many thought that the acquisition would allow Nvidia - which is also in the chip business - to monopolize the business.
Meanwhile, from the government and regulators, pressure emerged from the UK, the European Union, the United States, and even China. Even the Federal Trade Commission in the US has registered a lawsuit to stop the acquisition process.