Monday, July 26th 2021
NVIDIA-ARM Acquisition Facing Delays, Still Pending Regulatory Approvals
The NVIDIA acquisition of ARM from the clutches of Softbank (for a cool, $40 billion) is increasingly looking stretched towards the future. When the acquisition deal was first announced back in September 14th, 2020, NVIDIA announced it expected the business to be closed within an 18-month timeframe, which would place it towards March 2022. However, that objective may prove to have been set too aggressively; we're now in July, and NVIDIA still hasn't received any sort of regulatory approval towards its embattled, and mostly negatively received, plans for the acquisition of ARM.
Particularly here is NVIDIA's submission of the acquisition deal towards the European Commission - which still hasn't happened. Seeking regulatory approval on acquisitions usually is a bureaucratic minefield; even more so when we're talking about tech industry giants such as NVIDIA and ARM and the possibility of market monopolization. It's expected that any regulatory appraisal of the acquisition will take upwards of six months, considering the scope, scale, and legal hurdles involved, and with the European Commission's summer holidays starting today, NVIDIA will now only be able to submit acquisition documentation come September. That gives the European Commission only six months to evaluate an acquisition of this magnitude if NVIDIA were to complete the deal in its announced timeframe; regulators, however, usually aren't too interested in bending over backwards to accelerate timeframes just because of a company's interest, even if that company is NVIDIA. Should the acquisition go wayside or be delayed far too long for ARM's interests, the company is expected to opt for an IPO so as to raise investment.
Sources:
Telegraph.co.uk, via Tom's Hardware
Particularly here is NVIDIA's submission of the acquisition deal towards the European Commission - which still hasn't happened. Seeking regulatory approval on acquisitions usually is a bureaucratic minefield; even more so when we're talking about tech industry giants such as NVIDIA and ARM and the possibility of market monopolization. It's expected that any regulatory appraisal of the acquisition will take upwards of six months, considering the scope, scale, and legal hurdles involved, and with the European Commission's summer holidays starting today, NVIDIA will now only be able to submit acquisition documentation come September. That gives the European Commission only six months to evaluate an acquisition of this magnitude if NVIDIA were to complete the deal in its announced timeframe; regulators, however, usually aren't too interested in bending over backwards to accelerate timeframes just because of a company's interest, even if that company is NVIDIA. Should the acquisition go wayside or be delayed far too long for ARM's interests, the company is expected to opt for an IPO so as to raise investment.
15 Comments on NVIDIA-ARM Acquisition Facing Delays, Still Pending Regulatory Approvals
But we are talking about Nvidia and probably what I am saying above is a fairy tale. Of course Nvidia will want to keep the best tech for it's SOCs while selling licences for second class tech to others for a ridiculous high amount of money.
You don't have to buy ARM to develop ARM products.
and not to mention MS start to embracing arm with win 11, so.... :nutkick:
Like how I hope Intel purchase of SiFive will also fail.
I don't trust either with these two. Even though intel buying SiFive is less awful than NV-ARM deal.
ARM licensing model still allows NV to do whatever they want, exactly like how Apple is doing.NV doesn't need to buy ARM to do that, ARM licensing model allows them to develop whatever they want, it's how Apple is doing it without the need to buy ARM and Apple is larger than NV (And I would not like Apple to do it also).
NV previous strategies is just not good for the ARM concept. They will most probably change things sooner or later, will do some dirty tricks behind the scenes.
But I get that you're just flame baiting, not actually taking a stance here. Just as it is in every article about these big companies that have formed their own tribal communities of consumers.
Now, I am generally opposed to Nvidia, but they either have to be more public friendly, or be more plain and not super conceited.
I just want the same from Intel as I did from Nvidia: a Qualcomm grade performance...
Think what will happen for a second, this happened nearly a decade back.Yeah, and the public to buy your product. It better be good...
PS: also, if this deal fails it is not Arm that is on the line, it is its parent company - Softbank. Who hit a hard rock, not Arm...
Personally, I feel Nvidia's biggest hurdle will be the Chinese regulator. Having ARM as part of a US firm is a no go for them.