NVIDIA Terminates Plan to Acquire Arm Limited, SoftBank to Explore Public Offering

[Tsing]

Image: NVIDIA



NVIDIA has shared a press release confirming that it has given up on its drawn-out attempt of acquiring British semiconductor company Arm Ltd. from Japan’s SoftBank Group Corp. Not surprisingly, NVIDIA cited “significant regulatory challenges” as the reason behind the termination of the planned acquisition, which was originally announced back in September 2020. SoftBank gets to keep the $1.25 billion that’s already been prepaid by NVIDIA.



NVIDIA and SoftBank Group Announce Termination of NVIDIA’s Acquisition of Arm Limited (NVIDIA Newsroom)



The parties agreed to terminate the Agreement because of significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the...

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[Zarathustra]

It's nice to get some good news for a change.

We haven't had a lot of that lately.

It's going to sting for Nvidia though due to the $1.25B non-refundable down-payment.

 

[Uvilla]

It's nice to get some good news for a change.

We haven't had a lot of that lately.

It's going to sting for Nvidia though due to the $1.25B non-refundable down-payment.

Meh the fed will just print more 0 % open end money to buy back some stock and bonus for executive. Who need to perform and do anything when you have the fed!

 

[Brian_B]

Ding Dong the witch is dead!

It's going to sting for Nvidia though due to the $1.25B non-refundable down-payment.

I'm wondering how much of that was covered by the stock pop when they announced.

early Sept 2020, nVidia was trading at around $123. After reaching a high of about $330, the current price is around $250. That gives them a market cap of ~$628B

So from the time they announced until today, they gained ~$300B+ in market cap. Now, nVidia doesn't get that cash in the bank, but they do get to leverage the value of it.

ARM deal wasn't all of that - there are a lot of other things that go into stock prices. And no one likes to see money walk out the door, but I don't think it will crush nVidia. It's very likely they cut that check knowing that the deal would get refuted, but all the benefits from the announcement were considered worth the cost. It sent shockwaves through the industry, and it's very likely nVidia is benefiting greatly from a lot of the crap that ****storm has stirred up. I just can't see what that is exactly because the dust hasn't settled yet.

Hard to tease out how much of that stock price is due to what, but it hasn't exactly tanked since the deal was called off either.

 

[ThreeDee]

NOW is AMD's Chance!!

 

[Brian_B]

NOW is AMD's Chance!!

AMD is the master of their own destiny. They just aren't able (or willing, really) to get enough fab space to do it.