GPU manufacturer Nvidia decided to take a big step to expand its technology network in September 2020. Accordingly, the company announced that it had purchased the chip designer company Arm from SoftBank for $40 billion. The deal has faced intense regulatory scrutiny from the start. Apparently this review process hurt the purchase.
SoftBank will receive $1.25 billion compensation for cancellation of deal
Arm architecture continues to work with many of the world’s leading technology giants. The company, which powers many mobile and desktop processors, including all Apple Silicon chips, was unable to sustain its large-scale partnership with Nvidia. Three unnamed sources, allegedly described as “with direct knowledge of the transaction”, announced that the deal had expired recently.
Nvidia will likely pay Arm owner SoftBank up to $1.25 billion in separation fees for failing to process the transaction. Announced in September 2020, the agreement was expected to be one of the largest ever in the industry. However, scrutiny over the deal continued to cast a shadow over the partnership with Nvidia.
The fact that this news came to the agenda negatively affected Nvidia. After the partnership was announced in September 2020, there was a significant increase in the shares of the company. However, even the news of this unofficial deal cancellation caused a noticeable drop in company shares.
Nvidia has not yet made a statement on the subject. The leading companies in technology were never satisfied with this agreement. They worried that Arm would negatively discriminate against them by taking advantage of the NVIDIA monopoly. These concerns prompted the European Commission to launch an investigation last October.
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