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NVIDIA and SoftBank Group Announce Termination of NVIDIA’s Acquisition of Arm Limited

Tiger Newspress2022-02-08

NVIDIA and SoftBank Group Corp. (“SBG” or “SoftBank”) today announced the termination of the previously announced transaction whereby NVIDIA would acquire Arm Limited (“Arm”) from SBG. The parties agreed to terminate the Agreement because of significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties. Arm will now start preparations for a public offering.

“Arm has a bright future, and we’ll continue to support them as a proud licensee for decades to come,” said Jensen Huang, founder and chief executive officer of NVIDIA. “Arm is at the center of the important dynamics in computing. Though we won’t be one company, we will partner closely with Arm. The significant investments that Masa has made have positioned Arm to expand the reach of the Arm CPU beyond client computing to supercomputing, cloud, AI and robotics. I expect Arm to be the most important CPU architecture of the next decade.”

SBG today also announced that, in coordination with Arm, it will start preparations for a public offering of Arm within the fiscal year ending March 31, 2023. SBG believes Arm’s technology and intellectual property will continue to be at the center of mobile computing and the development of artificial intelligence.

“Arm is becoming a center of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, the Internet of Things and the metaverse, and has entered its second growth phase,” said Masayoshi Son, Representative Director, Corporate Officer, Chairman & Chief Executive Officer of SoftBank Group Corp. “We will take this opportunity and start preparing to take Arm public, and to make even further progress.”

Mr. Son continued, “I want to thank Jensen and his talented team at NVIDIA for trying to bring together these two great companies and wish them all the success.”

NVIDIA and SBG had announced that they had entered into a definitive agreement, under which NVIDIA would acquire Arm from SoftBank, on September 13, 2020. In accordance with the terms of the agreement, SBG* will retain the $1.25 billion prepaid by NVIDIA, which will be recorded as profit in the fourth quarter, and NVIDIA will retain its 20-year Arm license.

* 24.99% of Arm shares are attributable to SoftBank Vision Fund 1.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment21

  • ramssg
    ·2022-02-08
    Since the current level already factored in the ARM acquisition, can we expect correction now ?
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  • SanWangtikup
    ·2022-02-08
    [Smile] 
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  • LuckyPiggie
    ·2022-02-08
    1Like 😄
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  • koolgal
    ·2022-02-08
    It is now official - Nvidia is not buying ARM!  Investors can heave a sigh of relief.  It is back to business as usual for Nvidia doing what it does best - semiconductors!  Go Nvidia! 
    Reply
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    • koolgalReplying toCyrilDavy
      Yes I agree
      2022-02-09
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    • koolgal
      Yes I agree
      2022-02-09
      Reply
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    • koolgal
      I agree
      2022-02-09
      Reply
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    View more 2 comments
  • Jasminephyo
    ·2022-02-08
    Ok
    Reply
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  • janelie
    ·2022-02-08
    Nvidia does not need this acquisition!
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    • AndrewL
      👍
      2022-02-08
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  • Dawang
    ·2022-02-08
    Worst kept secret finally made public. Time for the breakup fee of 1.25B pls, thank U very much.. 💰💰💲💲
    Reply
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    • C1238
      Ok
      2022-02-08
      Reply
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    • xemrunx
      Ok
      2022-02-08
      Reply
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  • Bryan_lyc
    ·2022-02-08
    S
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  • ahhuattang
    ·2022-02-08
    So this kind of news is typically good or bad for the stock? Uncertainty over VS no need to fish out money (affecting financials)?
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  • LohYK
    ·2022-02-08
    I believe the price of the acquisition had been priced in. Let's see if price will hold and ride over quickly
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  • 🌧️🌤️☀️😉
    Reply
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  • AneeshAneesh
    ·2022-02-08
    Like
    Reply
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  • BigStonks101
    ·2022-02-08
    Pls let NVIDIA RISE.. dont be swayed by a missed acquisition
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  • Suba
    ·2022-02-08
    Looking forward for ARM ipo 
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    • Suba
      Waiting
      2022-02-08
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  • Karenchong
    ·2022-02-08
    The saga is finally over
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    • Jo5tarz
      [Facepalm]
      2022-02-08
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  • 木子一休
    ·2022-02-08
    [smile] 
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  • TeckV
    ·2022-02-08
    Hope not much affected on growth..[Bless] 
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    • Cheekyd
      please like 👍
      2022-02-08
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    • calbee_lwh
      K
      2022-02-08
      Reply
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  • Annjoyyy
    ·2022-02-08
    Like
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  • 再等等吧
    ·2022-02-08
    [Heartbreak] 
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  • ninjainvest
    ·2022-02-08
    ok let the matter rest and stock rise again!
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    • Cheekyd
      please like 👍
      2022-02-08
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