NVIDIA removes Arm from its basket, Arm will go public instead

NVIDIA’s plan to acquire chip designer Arm Holdings is dead. The companies announced the deal a year and a half ago, but since then it has come under intense scrutiny from antitrust regulators around the world, and now parent company NVIDIA and Arm , Softbank, declares having terminated the agreement.

Meanwhile, Softbank unveils new plans for Arm. He named a new CEO for Arm and announced his intention to take the company public by March 31, 2023.

Arm does not manufacture its own processors, but the company designs a chip architecture that is licensed by the makers of virtually every smartphone on the market today as well as many other devices, including consumer electronics, servers and even newer laptops and desktops like Apple’s latest Macs. with Apple Silicon chips (based on Arm technology).

Unsurprisingly, many chipmakers were immediately skeptical when a rival chipmaker (NVIDIA) announced that it wanted to buy Arm, but would in no way give preferential treatment to its own chips. And it seems that antitrust regulators in the United States, Europe, China and other regions were also concerned.

With the odds of the deal surviving this level of scrutiny, Softbank and NVIDIA decided to go another route. NVIDIA will continue to hold a 20-year license for Arm designs and Softbank will be able to retain $1.25 billion prepaid by NVIDIA.

Japanese company Softbank acquired UK-based Arm Holdings in 2016 for $32 billion announcing it would inject money into the company to expand Arm’s global business. According to Reuters, Softbank would have received approximately $12 billion in cash and up to $50 billion in NVIDIA stock had the sale gone as proposed…but with the deal falling through, Softbank will have to look for other ways to raise funds. And it looks like the company is hoping a public offering will.

Arm’s new CEO who will help lead this initiative is Rene Haaswho has worked in the chip industry for more than three decades, including 7 years as a vice president at NVIDIA and most recently 8 years on the management team at Arm.

Going through Reuters, The New York Times, AnandTech, Nvidiaand Arm

Liliputing’s main sources of income are advertising and affiliate links (if you click on the “Shop” at the top of the page and buy something on Amazon, for example, we will earn a small commission).

But there are several ways to directly support the site, even if you use an ad blocker* and hate shopping online.

Contribute to our Patreon Campaign

Where…

Contribute through PayPal

* If you are using an ad blocker like uBlock Origin and seeing a pop-up message at the bottom of the screen, we have a guide that can help you disable it.


Source link

Peggy P. Gilmore