SoftBank, Nvidia Scrap $40B Arm Deal Due to ‘Regulatory Challenges’

Nvidia and SoftBank agreed to terminate Nvidia’s proposed $40 billion Arm buy “because of significant regulatory challenges preventing the consummation of the transaction,” said the companies Tuesday. Arm will now start preparations for an initial public offering to be completed during the fiscal year ending March 2023, said SoftBank. Under their September 2020 transaction agreement, SoftBank will pocket Nvidia’s $1.25 billion prepayment and record it as fiscal Q4 profit, and Nvidia will keep its 20-year Arm license. The FTC sued Dec. 2 to block Nvidia’s Arm buy, saying the combined firm would “stifle competing next-generation technologies” (see 2112030002). An agency spokesperson declined comment Tuesday.