What They Say
As had been becoming increasingly likely, Nvidia and SoftBank have given up on their plan for Nvidia to acquire the Arm Ltd subsidiary of SoftBank, citing ‘significant regulatory challenges preventing the consummation of the transaction’.
SoftBank said that it will start to prepare Arm for an IPO. It will also keep $1.25 billion pre-paid by Nvidia and Nvidia will retain a 20 year licence to Arm technology.
What We Think
This deal was always going to be a tricky one with regulators, I think. Those that watch these things believe that SoftBank is unlikely to get as much for Arm in an IPO as it would have got from the deal. (BR)
