Jump to content

Nvidia's $40 billion Arm acquisition may have a speedbump


Karlston

Recommended Posts

Nvidia's $40 billion Arm acquisition may have a speedbump

arm nvidia

(Image credit: Nvidia)

 

US competition regulators have demanded more documents from Nvidia amidst calls by its rivals to block its acquisition of Arm

 

Arm’s business model involves licensing chip designs to several hundred other companies including many that compete directly with Nvidia.

 

These competitors claim the takeover will put them at a disadvantage as it would allow Nvidia to directly affect their operations.

Close scrutiny

Nvidia announced its plan to acquire the British chip designer from Japan’s SoftBank in a $40 billion deal, back in September. Since both companies are significant entities in the world of technology, the California-headquartered technology giant expected this kind of scrutiny by anti-competition regulators, not just in the US, but in other jurisdictions as well. 

 

In fact, when the deal was announced, Nvidia had said they expected the deal to take 18 months to complete. 

 

Now, according to reports, the US Federal Trade Commission (FTC) has sent a notice to Nvidia asking for further details about the deal before it takes a call whether the acquisition requires a full-blown anti-competition investigation. 

 

Reports claim that the FTC is likely to “seek reams of internal documents and interview executives as part of the process,” which also involves inviting comments from various interested parties, including Arm’s customers and Nvidia’s rivals.

First of many

If the FTC sees merit in the anti-competition claims, it could sue Nvidia to block the acquisition, which “could trigger years of delays”.

 

Nvidia will face similar scrutiny once it files for approval in other jurisdictions outside the US, most significantly in the UK and China. Chinese chip makers such as Huawei have already been lobbying Beijing to block the deal fearing it will put them at the mercy of an American company. 

 

In the UK, Arm’s co-founder Hermann Hauser has urged the Government to stop the deal as it would affect hundreds of jobs. This, despite reports of assurances from Nvidia’s CEO Jensen Huang, that his company is prepared to make legally binding commitments to protect jobs in Britain.

 

Via: The Telegraph

 

 

Nvidia's $40 billion Arm acquisition may have a speedbump

Link to post
Share on other sites
  • Replies 0
  • Created
  • Last Reply

Top Posters In This Topic

  • Karlston

    1

Popular Days

Top Posters In This Topic

Popular Posts

Nvidia's $40 billion Arm acquisition may have a speedbump Could be just the first of many (Image credit: Nvidia)   US competition regulators have

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...