SoftBank’s sale of Arm to Nvidia collapses, Arm to IPO

SoftBank’s sale of Arm to US chipmaker Nvidia has collapsed, a source familiar with the matter told Reuters, adding that Arm will plan for an IPO.

The deal has faced several regulatory hurdles, with the US Federal Trade Commission suing to block it in December.

The buyout is also under the scrutiny of British and EU regulators amid concerns that it could push up prices and reduce choice and innovation.

The deal would give Nvidia control of Arm, which licenses its computing architecture to semiconductor firms that design chips for devices such as mobile phones.

Nvidia declined to comment. Arm and SoftBank did not immediately respond to a Reuters request for comment.

The value of the deal, which depends on Nvidia’s stock price, has been as much as US$80 billion (A$112 billion), though the California company’s stock has fallen.

The US Federal Trade Commission (FTC) argued in December that competition in the nascent markets for chips in self-driving cars and a new category of networking chips could be hurt if Nvidia carried out the purchase.

An Nvidia spokesperson in January, as questions over the future of the deal increased, said the company believed the acquisition “provides an opportunity to accelerate Arm and boost competition and innovation.”

The Japanese investment giant would receive a break-up fee of up to US$1.25 billion. IT News