Nvidia’s $66 billion Arm takeover collapses, SoftBank to take Arm public

Nvidia’s $66 billion planned acquisition of Arm from tech conglomerate Softbank has collapsed, citing regulatory hurdles, and will seek to list the company.

The deal was initially announced in 2020 and was valued at the time at $40 billion in Nvidia cash and stock. Nvidia will be paying $1.25 billion to SoftBank for failing to go through with the acquisition. Simon Segars, CEO of Arm, is stepping down to be replaced by Rene Haas, Arm’s head of IP. Coincidentally, Rene Haas used to run Nvidia’s Arm business years ago.

SoftBank announced Arm will now prepare for a public offering within the fiscal year ending March 31, 2023.

Arm produces technology at the core of every smartphone processor, including Android devices and Apple’s iPhones running on Qualcomm chips. The firm counts nearly every major semiconductor company as a client.

The acquisition has faced scrutiny since it was announced. Britain-based Arm is a neutral supplier to several competing big tech companies. Microsoft and Qualcomm both use Arm’s leading technology and publicly opposed the deal.

Technology and semiconductor companies feared that if Nvidia purchased Arm, it could favor its own business over its clients, who may not have an alternative to Arm’s technology.