Is the $40 billion acquisition going yellow? NVIDIA quietly ready to give up the acquisition of arm


Tencent technology news according to media reports, NVIDIA is reported to be quietly preparing to give up the acquisition of arm.
In September 2020, NVIDIA announced that it would spend US $40 billion to acquire arm company, which is the largest transaction in the semiconductor industry and was originally scheduled to be completed within 18 months.
However, the whole acquisition process is very difficult, and NVIDIA is subject to great resistance. In particular, at the end of last year, the US FTC Federal Trade Commission intervened and strongly opposed NVIDIA’s acquisition of arm. It believes that arm cannot maintain its neutral position after being acquired, which will affect market competition and even lead to the disintegration of arm’s health.
Eetimes, the authoritative media in the semiconductor industry, once published an article on this event, saying that if NVIDIA fails to acquire arm, without the former’s investment, arm will be at a disadvantage in the growth of the data center market and the x86 competition with Intel, and will also face the fierce competition of emerging rival risc-v.
For arm to give up the option of being acquired and turn to IPO listing, arm believes that this will stifle its ability to invest, expand and innovate, because the capital market focuses on short-term income growth and profitability, which is not what arm is good at.