Qualcomm, others would invest in ARM IPO
“If Arm has an independent future, I think you will find there is a lot of interest from a lot of the companies within the ecosystem, including Qualcomm, to invest in Arm,” the Telegraph quoted Cristiano Amon, incoming CEO of Qualcomm, as saying. Amon said Qualcomm has “had discussions with other companies that feel the same way,” The Telegraph reported.
Graphics chip vendor Nvidia Corp. (Santa Clara, Calif.) agreed to buy intellectual property licensor ARM from Japan’s SoftBank Group in summer 2020, subject to regulatory approval (see ARM sale to Nvidia agreed at $40 billion). If successfully concluded, the deal would be the biggest M&A in the history of the semiconductor sector.
While Nvidia has made promises about investing in ARM in the UK they are non-binding and many licensors of ARM have expressed concern at Nvidia becoming the “gate-keeper” to what is for them fundamental technology.
Nvidia feels an IPO is an inferior solution to an Nvidia acquisition. “ARM needs an infusion of new technology that it can provide to ARM licensees everywhere, which is why we stepped up and agreed to buy ARM,” The Telegraph reports an Nvidia spokesperson saying.
The deal is being scrutinised by regulatory authorities in UK, Europe, the US and China where the likes of Qualcomm, Microsoft and Google have all been speaking out against the deal.
Nvidia has said it still expects to close the deal with 18 months of the original announcement, which would be early in 2022.
Relared links and articles:
Europe set to examine Nvidia-ARM deal
UK authorities launch probe into Nvidia-ARM deal
ARM’s China struggle threatens $40bn Nvidia deal
China likely to block Nvidia-ARM deal, says ex-Lenovo exec
Opinion: Nvidia’s bad deal is not yet done
ARM sale to Nvidia agreed at $40 billion
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