Report: Nvidia buys ARM, watch out for AMD and Intel

Could this be a new era for Nvidia?

Nvidia is indeed looking to buy ARM, at least according to the latest takeover data, after a string of rumors earlier this year.

According to the Financial Times, Nvidia is buying ARM and will pay $ 40 billion to SoftBank for the opportunity. The current owner of the company, SoftBank, acquired ARM in 2016 for $ 32 billion, but now it is a difficult time, which, among other things, requires fundraising (combined with financial difficulties that negatively affect SoftBank, including the coronavirus).

Earlier it seemed that SoftBank could follow the IPO route with ARM, but now the situation is such that a full sale seems inevitable, at least if the Financial Times is not mistaken, and the publication sounds quite confident in its statement, according to which there may be announced today.

The FT claims that “several people with direct knowledge of the matter have announced the takeover, promising a cash and equity deal that will make SoftBank the largest shareholder in Nvidia.”

| REGULATORY OBSTACLES

Of course, we should be careful about any rumors, especially such grandiose ones, because such a merger promises a big wave for the entire tech industry. As we discussed earlier, many believe that regulatory obstacles can stop the acquisition process – and this problem has not gone away. For the same reason, Apple at one time abandoned the deal with ARM, along with large differences in ARM licensing relative to Apple.

The same goes for Nvidia, some users argue, and as we reported earlier, CSS Insight analyst Jeff Blaber previously noted, “ARM is actually a licensing business. And while the acquisition of the company can make Nvidia much stronger, the price is extremely high, and licensing alone is not enough for synergy. Nvidia could license ARM technologies and build custom CPU cores or partner to do the same without buying ARM. ”

Blaber just confirmed on Twitter that Nvidia’s acquisition of ARM would be damaging, and he also pointed out many “question marks” around this situation involving regulators.

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