In September 2020, the NVIDIA had announced her intention to acquire ARM for $ 40 billion, but apparently, and almost a year and a half later, NVIDIA may abandon the acquisition.
Αand none of the companies has officially confirmed that the NVIDIA is ready to abandon the idea of its acquisition ARM, this decision would not surprise anyone if one thinks that the acquisition has to face multiple controls, even lawsuits from the competent regulators.
The Bloomberg reports today that the NVIDIA may be preparing to abandon its planned acquisition ARM, according to anonymous sources who are well aware of the issue.
Today's information presents a rather bleak picture of the acquisition, noting not only the problems NVIDIA has faced with regulators, but also the great pressures and reactions from big players from other big players in the industry, including Microsoft, Qualcomm and Intel.
While NVIDIA initially promised that ARM would remain neutral if the acquisition was completed, its competitors are not convinced that this is likely to happen. It is also a legitimate concern, as ARM supplies processors to many industries, to the point that ARM processors are almost out of whack.
NVIDIA, on the other hand, is a company that competes with major market players in some of these industries, and if it eventually succeeds in acquiring ARM, it will likely create a lot of chip supply problems that other major manufacturers in the industry need.
In December of 2021The United States Federal Trade Commission filed a lawsuit against NVIDIA to block the merger, arguing that if NVIDIA were to acquire ARM, it would have too much influence in the semiconductor industry. The deal has also been challenged by regulators in Europe, and according to a Bloomberg report today, even China is ready to suspend the merger unless other regulators do.
Taking into account all the above problems, the NVIDIA has a tough tough battle ahead of it if it wants to continue with this takeover, but it seems almost unlikely to meet the original timetable of 18 months of NVIDIA to complete the acquisition, even if the initial agreement between the two companies is not completed by September 2022, will end ex officio.
Despite any problems with the implementation of the acquisition, the NVIDIA and ARM continue to say they are confident the deal can be completed, with representatives of both companies issuing optimistic - albeit uninspiring - statements in Bloomberg when asked to comment on the information.
In the background, however, we hear that NVIDIA is "quietly preparing to leave" the deal. We will see what happens in the coming months, as NVIDIA may have no choice but to abandon the acquisition, and keep its hands off the semiconductor giant (ARM).
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