Nvidia, one of the largest hardware makers in the industry, has been trying to buy ARM for a while now. ARM is a leading chip designer that is behind a vast majority of chipsets used in smartphones, laptops and various other gadgets used around the world.
This deal would have been one of the biggest acquisitions in the tech industry and would have given Nvidia a huge and unfair advantage in the hardware market. Obviously, this did not sit well with regulatory companies and some have even sued Nvidia for making such a move.
Following Nvidia’s battle with regulatory hurdles, the US hardware maker has officially ended its pending deal with ARM. Following the announcement, ARM’s CEO resigned and was immediately replaced by Rene Haas.
Nvidia made several attempts to convince regulators that the deal would not affect ARM’s licensing model. The GPU maker even offered to create a separate entity that would hold all the chip design licenses, but none of the attempts worked.
As a result of the failed deal, SoftBank, the parent company behind ARM, will receive a break fee of $1.25 billion. SoftBank has now announced that it plans to turn ARM into a publicly traded company to get some of the expected cash inflow from the failed deal.
Some industry sources have said that ARM will go public in the US, but there is no official confirmation yet.
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