NVIDIA to lose $ 1.25 billion if regulators stop acquiring ARM

Nvidia’s purchase of ARM is one of the most contentious topics in the hardware industry. Nvidia began the purchase of the British company a year ago for the incredible sum of 40 billion dollars, although since then, this acquisition, one of the most expensive in history, has only encountered constant obstacles. These obstacles come from the various government regulatory agencies (especially from Great Britain, China and the European Union) that have been concerned about possible conflicts of interest.

According to the agreement between Nvidia and SoftBank, this acquisition would be completed in a year and a half, with the possibility of extending it to two years. This means that to be completed in March 2022 or, at the latest, September 2022. If regulatory agencies manage to avoid this or if other obstacles are encountered, the acquisition will be canceled.

Because Nvidia was still unable to convince some agencies that the purchase will not affect the normal operation of ARM, the green company is already beginning to consider alternative scenarios. Nvidia CEO Jensen Huang claims that the company will have no problem thriving even without ARM. However, the executive warned investors that the company may lose $ 1.25 billion if the acquisition is not completed within the term established by the advance payments made.

There are still 10 months until the deadline. Normally a company would not worry, although in this case, a new regulator appears every month that intends to block the acquisition, stretching the purchase ever further and bringing it closer and closer to the deadline. For example, the British antitrust agency has submitted repeated requests for a stock listing. The European Union is also conducting its antitrust investigation. On the other hand, both US and Chinese companies are also concerned about the effect this acquisition will have on the market and competition, as most microprocessor startups rely on ARM in one way or another.

At the moment, Nvidia’s acquisition of ARM is ongoing. The company even already promotes the power of ARM CPUs in its servers as if the company was already its own, although at the moment there is nothing firm.

Will Nvidia’s acquisition of ARM be completed?

Source: HardwareTimes