According to informed sources, Nvidia is in in-depth negotiations on the acquisition of ARM. ARM is a chip designer acquired by SoftBank Group for $32 billion four years ago.
People familiar with the matter said that the goal of the two parties is to reach an agreement in the next few weeks, and because the information is private, they require not to reveal their identity. People familiar with the matter said that Nvidia was the only suitor to have specific discussions with SoftBank.
The transaction with Arm may be the largest transaction in the history of the semiconductor industry. In recent years, the transaction has been consolidated as the company seeks to diversify and expand. The technology of Arm, headquartered in Cambridge, England, supports chips in products including Apple devices and connected devices.
People familiar with the matter said that there is no final decision yet, and the negotiations may drag on for longer or longer. People familiar with the matter said that if SoftBank fails to reach an agreement with Nvidia, SoftBank may evaluate the interest of other buyers. Representatives of Nvidia, SoftBank and Arm declined to comment.
Any transaction with Arm’s customer Nvidia may trigger regulatory review and cause opposition from other users of the company’s technology. Other Arm customers may require assurances that the new owner will continue to provide equal access to the Arm instruction set. This concern led the neutral company SoftBank to buy Arm during the last sale.
Billionaire Masayoshi Son has been selling some of SoftBank’s trophy assets in hopes of repaying the debts of the Japanese conglomerate. SoftBank sold some of its shares in Chinese internet giant Alibaba Group Holding and some shares in wireless operator T-Mobile US.
According to Bloomberg News, SoftBank has been exploring options for selling part or all of its shares in Arm through a sale or public offering. People familiar with the matter said that if SoftBank decides to continue using this program, the chip design company may be listed next year.
As companies push to use their architectures in smarter cars, data centers, and network equipment, Arm becomes more and more valuable. According to “New Street Research”, if the company conducts an initial public offering (IPO) next year, its market value may reach 44 billion U.S. dollars, and by 2025, this valuation may increase to 68 billion. Dollar.
Nvidia, headquartered in Santa Clara, California, is the world’s largest manufacturer of graphics chips. The company’s stock price rose 1.4% in New York trading on Thursday, with a market value of approximately $261 billion. In the past year, the stock has more than doubled.
Is Nord the iPhone SE of the OnePlus world? We discussed this on the weekly technical podcast Orbital, you can subscribe via Apple Podcast, Google Podcast or RSS, download the episode, or click the play button below.