Software bank announced to its investors the cancellation of the operation to buy ARM from Nvidia is due to “regulatory failures”.
Nvidia announced in September 2020 the signing of an agreement with Softbank worth $40,000. After this operation, the company specializing in the development of chips and software, ARM Limited, will become a subsidiary of Nvidia.
Without hesitation, the transaction received wide scrutiny from the governing bodies of the UKthe European UnionUnited States y China for its potential to turn into a monopoly in the chip manufacturing business.
Last December, the FTC (United States Federal Trade Commission) filed a lawsuit to block the purchase. Considering that this purchase would harm free trade in three technology sectors and additionally provide Nvidia with confidential data from direct competitors in the sector.
Softbank said that, as stipulated in the contract, it would be left with a down payment of $1.250 million received by Nvidia at the start of the operation. This money will appear in the company’s upcoming quarterly accounts.
In the same communication, it is stated that Softbank intends to seize ARM in the pocket before the end of the next fiscal year (March 31, 2023) but did not provide further details on the operation.
Moreover, the BBC says Simon Segars, CEO of ARM Limited, has stepped down after a decade and will be replaced by Rene Haas, the company’s president of intellectual property.