Nvidia did not spend USD 40 billion to acquire Arm because the planned acquisition has now been cancelled.
SoftBank announced this cancellation in a statement. "Nvidia and SBG (SoftBank Group) have agreed to cancel the agreement on February 8, 2022 due to major regulatory issues that hinder the realization of the transaction despite both parties showing good faith," SoftBank wrote in a statement.
Instead of spending USD 40 billion, Nvidia will instead provide funds amounting to USD 1.25 billion to SoftBank - the owner of Arm - for failing to complete this acquisition, we quoted from The Verge, Tuesday (8/2/2022).
Arm CEO Semon Segars will also lose his job and be replaced by Rene Hass, who many years ago led Nvidia's Arm business.
According to SoftBank, ARM will now try to sell its shares to the public through an initial public offering (IPO) in their fiscal year starting on April 1.
Nvidia's first planned acquisition of Arm was announced in September 2020, and at the time it was shaking up the tech world and other businesses because of its enormous value.
The acquisition, if successful, would give Nvidia control of the company behind the architecture and intellectual property on chips around the world. From chips for phones, tablets, to servers.
In fact, almost all current Apple products, and all future products, use the Arm architecture.
The failure of this acquisition was actually predictable. Because since the plan was announced many parties opposed it.
Both from the company side, as well as from the government side of various countries. Like the governments of the United States, Britain, and the European Union. Even the US trade agency FTC has sued Nvidia to stop the acquisition process.