Challenges Facing the Mobile and Computing Industries with Arm IPO

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By Malik Saadi | 1Q 2022 | IN-6447


NVIDIA Abandoning Plans to Buy Arm


This week, NVIDIA and SoftBank jointly announced they are abandoning their plans for NVIDIA to acquire Arm Limited from SoftBank, almost eighteen months after the two companies announced the transaction worth US$40 billion. SoftBank was looking to get rid of Arm almost four years after acquiring the British chipset designer in 2016. In 2020, it approached several potential buyers, but NVIDIA managed to make the best offer, including a bulletproof strategy for enabling Arm’s Instruction Set Architectures (ISAs) to compete effectively against x86 compatible processors across multiple industries, including Personal Computers (PCs), High-Performance Computing (HPC), Artificial Intelligence (AI), and the Internet of Things (IoT).

Impact on the Industry


Impact on NVIDIA: One direct impact the termination of this transaction has on NVIDIA is that it will have to pay US$1.25 billion to Arm in accordance with the breakup clause it signed with SoftBank. This is in addition to the legal and marketing fees it spent to incentivize …

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