Arm going public after $66 billion Nvidia buy deal falls apart

Posted:
in General Discussion edited February 2022
Softbank will take Arm public to unload it, after Nvidia officially stopped its purchase due to concerns from regulators and Arm's current customer base.




In late 2020, Nvidia announced it would be buying Arm from SoftBank for nearly $40 billion in a cash and stock-based purchase. Nvidia's shares have since increased in value, making the deal worth roughly $66 billion today.

However, by January 2022 that Nvidia was already considering backing out of the deal.

Nvidia likely backed out of the deal, as it faced increasing pressure from regulators. UK politicians began to investigate the takeover in November 2021, citing national security concerns.

In the United States, the Federal Trade Commission sued to block the deal in December 2021 over concerns it would stifle innovation and harm competition in the chip market.

Now, as reported by the Financial Times, the deal is officially over. According to sources familiar with the matter, Softbank is seeking to unload Arm through an initial public offering before the end of 2022.

Sources claim that SoftBank prefers the idea of listing Arm in New York and will seek to resist nationalistic pressure.

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Comments

  • Reply 1 of 32
    rezwitsrezwits Posts: 879member
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    edited February 2022 watto_cobra
  • Reply 2 of 32
    Balance has returned to the Force
    Mac4macmikeybabesstarof80watto_cobra
  • Reply 3 of 32
    22july201322july2013 Posts: 3,567member
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.
  • Reply 4 of 32
    GeorgeBMacGeorgeBMac Posts: 11,421member
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.

    But, as the United States militarizes its industries and uses them as weapons of (cold) war, this would be a loss to the world.

    According to today's America:
    "If it's an American technology, we (the government) gets to determine who has access to it".
    So much for freedom.  So much for free markets.   So much for capitalism.  Good-bye!  Nice knowing you!
  • Reply 5 of 32
    larryjwlarryjw Posts: 1,031member
    I don't see a problem with an IPO. What will ARM be worth on the market? How will that affect companies using ARM? Apple can buy a piece. We can all buy pieces. 

    Of course, there is competition. The Open RISC-V. There's a lot more infrastructure that must be built around RISC-V to become a competitor to ARM, but pushing out ARM into the wild by itself might make RISC-V more viable. 

    On the other hand, RISC-V has the real danger of producing an infinite variety of one-off clones all incompatible with each other. ARM, at least, controls the roadmap of its development. 

    I'm not sure Apple adheres to that roadmap for ARM, given its version of the processor outcompetes other versions of ARM. The Broadcom and TI versions of ARM are not something to write home about. 
    watto_cobra
  • Reply 6 of 32
    22july201322july2013 Posts: 3,567member
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.

    But, as the United States militarizes its industries and uses them as weapons of (cold) war, this would be a loss to the world.

    According to today's America:
    "If it's an American technology, we (the government) gets to determine who has access to it".
    So much for freedom.  So much for free markets.   So much for capitalism.  Good-bye!  Nice knowing you!
    I read your post three times and was unable to determine how it relates to my comment or what you even mean. Can you speak more plainly in the future?
    ronnStrangeDayswatto_cobra
  • Reply 7 of 32
    larryjw said:
    I don't see a problem with an IPO. What will ARM be worth on the market? How will that affect companies using ARM? Apple can buy a piece. We can all buy pieces. 

    Of course, there is competition. The Open RISC-V. There's a lot more infrastructure that must be built around RISC-V to become a competitor to ARM, but pushing out ARM into the wild by itself might make RISC-V more viable. 

    On the other hand, RISC-V has the real danger of producing an infinite variety of one-off clones all incompatible with each other. ARM, at least, controls the roadmap of its development. 

    I'm not sure Apple adheres to that roadmap for ARM, given its version of the processor outcompetes other versions of ARM. The Broadcom and TI versions of ARM are not something to write home about. 
    They already IPO’d a long time ago before being acquired 
    watto_cobra
  • Reply 8 of 32

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    watto_cobra
  • Reply 9 of 32
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    Arm was a spin off from Acorn, not Apple
    muthuk_vanalingamwatto_cobra
  • Reply 10 of 32
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    What are you talking about? Microsoft is a software company. What do they care about CPUs other than very recently wanting to make their own for cloud server purposes? Microsoft only care about getting their software working on whatever architecture that sells (and under Pichai whatever platform that sells). Good grief.

    And it is Pixar that Jobs dumped to raise cash. Instead, Intel was actually part of the original ARM research and development group along with Apple. They correctly decided to go all in on x86 and sold their stake to Marvell. Before anyone says "shortsighted", x86 was the consensus best option available at the time and Intel dominated  computing for 40 years as a result. ARM-driven mobile surpassing PC in 2010 and ARM PC CPUs rivaling - though not surpassing - PC CPUs in 2020 doesn't invalidate that decision. Especially since ARM still isn't much of a factor in server computing. Particularly since - as the Steam Deck shows - x86 is now viable for mobile devices, meaning that when AMD's Zen 5 SOCs are released in 2023 (on a 5nm node that TSMC is going to customize for AMD to keep them from jumping ship to Samsung) and when Intel's 5nm SOCs are released in 2025, we are going to see Windows 11 and ChromeOS devices that can match the iPad's form factor and performance. After that when they reach 3nm, x86 mobile phones that can rival the iPhone will be possible. (I bet that a big.LITTLE quad core AMD x86 Android phone would outperform any Qualcomm or Exynos phone already but no such thing exists.)
    edited February 2022 williamlondonspheric
  • Reply 11 of 32
    KBuffett said:
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    Arm was a spin off from Acorn, not Apple

    Thanks :smile: 
  • Reply 12 of 32
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    What are you talking about? Microsoft is a software company. What do they care about CPUs other than very recently wanting to make their own for cloud server purposes? Microsoft only care about getting their software working on whatever architecture that sells (and under Pichai whatever platform that sells). Good grief.

    And it is Pixar that Jobs dumped to raise cash. Instead, Intel was actually part of the original ARM research and development group along with Apple. They correctly decided to go all in on x86 and sold their stake to Marvell. Before anyone says "shortsighted", x86 was the consensus best option available at the time and Intel dominated  computing for 40 years as a result. ARM-driven mobile surpassing PC in 2010 and ARM PC CPUs rivaling - though not surpassing - PC CPUs in 2020 doesn't invalidate that decision. Especially since ARM still isn't much of a factor in server computing. Particularly since - as the Steam Deck shows - x86 is now viable for mobile devices, meaning that when AMD's Zen 5 SOCs are released in 2023 (on a 5nm node that TSMC is going to customize for AMD to keep them from jumping ship to Samsung) and when Intel's 5nm SOCs are released in 2025, we are going to see Windows 11 and ChromeOS devices that can match the iPad's form factor and performance. After that when they reach 3nm, x86 mobile phones that can rival the iPhone will be possible. (I bet that a big.LITTLE quad core AMD x86 Android phone would outperform any Qualcomm or Exynos phone already but no such thing exists.)

    Relax!! I was asking, jayyzzzuuuzzz
    watto_cobra
  • Reply 13 of 32
    narwhalnarwhal Posts: 119member
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm

    In 1990, when Acorn's RISC chip division didn't have the funds to implement Apple's requested changes for Newton, ARM was formed, a joint venture of Apple, VLSI and Acorn (with Acorn's IP). When Steve Jobs returned to Apple, Newton was discontinued and Apple sold its stake in ARM for a big profit, helping Apple's balance sheet until Steve could release iMacs, iPods and eventually iPhones and iPads. (Ironic that both Newton and iPhone were based on ARM.)
    tmayStrangeDayswatto_cobra
  • Reply 14 of 32
    GeorgeBMacGeorgeBMac Posts: 11,421member
    tmay said:
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.

    But, as the United States militarizes its industries and uses them as weapons of (cold) war, this would be a loss to the world.

    According to today's America:
    "If it's an American technology, we (the government) gets to determine who has access to it".
    So much for freedom.  So much for free markets.   So much for capitalism.  Good-bye!  Nice knowing you!
    LOL!

    Always looking out for your authoritarian pals...

    In this case, the authoritarians are us, the United States -- using technology (and the financial system we control) as a weapon to enable us to dictate to other countries how they will conduct their business.

    That was the chief fear about an American company buying ARM -- that it's technology would no longer be available to all (as it is now)

    Our latest authoritarian move?   Telling Germany we won't let them use their natural gas pipeline even while energy prices soar.
    edited February 2022
  • Reply 15 of 32
    GeorgeBMacGeorgeBMac Posts: 11,421member
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.

    But, as the United States militarizes its industries and uses them as weapons of (cold) war, this would be a loss to the world.

    According to today's America:
    "If it's an American technology, we (the government) gets to determine who has access to it".
    So much for freedom.  So much for free markets.   So much for capitalism.  Good-bye!  Nice knowing you!
    I read your post three times and was unable to determine how it relates to my comment or what you even mean. Can you speak more plainly in the future?

    Were you not aware that part of the fear with NVIDIA was that, once ARM was controlled by an American company that it would also then be controlled by the American government to threaten and intimidate other countries and companies -- just as we have done with other  so called "American technologies"?
  • Reply 16 of 32
    chadbagchadbag Posts: 2,000member
    KBuffett said:
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    Arm was a spin off from Acorn, not Apple
    But Apple was an early partner in the development of ARM [v6] in the late 80s (which is one reason they have an irrevocable über-license) and Apple had an ownership interest that Steve Jobs did sell off to raise cash. 


    edited February 2022 watto_cobra
  • Reply 17 of 32
    crowleycrowley Posts: 10,453member
    KBuffett said:
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm


    Arm was a spin off from Acorn, not Apple
    ARM the tech was originated at Acorn, but ARM the company was a joint venture with Acorn mostly providing the know how, VLSI mostly providing the tech and Apple mostly providing the funding, and developing the first integrated product, the Newton.  https://developer.arm.com/documentation/den0013/d/Introduction/History
    chadbagStrangeDaysronnwatto_cobra
  • Reply 18 of 32
    mjtomlinmjtomlin Posts: 2,673member
    lorca2770 said:

    Just a question, since time makes me forget. Wasn’t Arm developed by Apple, and Steve Jobs sold the company in the times of necessity? Careful! I am not talking about the false narrative of Microsoft. Only about Arm



    No. The modern ARM architecture was a joint venture between, Acorn (ISA, design), VLSI (fabrication), and Apple (money)… Apple wanted an efficient mobile chip for the Newton.

    Makes you wonder why Apple didn’t just buy Acorn and use their CPUs instead of switching to PowerPC?
    ronnjony0watto_cobra
  • Reply 19 of 32
    StrangeDaysStrangeDays Posts: 12,865member
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.

    But, as the United States militarizes its industries and uses them as weapons of (cold) war, this would be a loss to the world.

    According to today's America:
    "If it's an American technology, we (the government) gets to determine who has access to it".
    So much for freedom.  So much for free markets.   So much for capitalism.  Good-bye!  Nice knowing you!
    I read your post three times and was unable to determine how it relates to my comment or what you even mean. Can you speak more plainly in the future?

    Were you not aware that part of the fear with NVIDIA was that, once ARM was controlled by an American company that it would also then be controlled by the American government to threaten and intimidate other countries and companies -- just as we have done with other  so called "American technologies"?
    I think you’re confusing America and China. The CPC has an iron grip over everything Chinese companies do or create, and can mandate compliance in any way they see fit. This is different than the US where the constitution affords more protections. (Export controls are a slightly different matter.)

    Your continual China/CPC whitewashing can’t change this. 
    edited February 2022 tmaychadbagronnpatchythepirate
  • Reply 20 of 32
    rezwits said:
    Dang come on NVIDIA, spend the $66 Billion.  Darn we almost had um...  ;)

    p.s. and not get a dime of ROI
    Actually, if they create their IPO on a US Stock Exchange, as the article claims, it still is a small win for America, since there is also a Tokyo Stock Exchange.

    But, as the United States militarizes its industries and uses them as weapons of (cold) war, this would be a loss to the world.

    According to today's America:
    "If it's an American technology, we (the government) gets to determine who has access to it".
    So much for freedom.  So much for free markets.   So much for capitalism.  Good-bye!  Nice knowing you!
    I read your post three times and was unable to determine how it relates to my comment or what you even mean. Can you speak more plainly in the future?

    Were you not aware that part of the fear with NVIDIA was that, once ARM was controlled by an American company that it would also then be controlled by the American government to threaten and intimidate other countries and companies -- just as we have done with other  so called "American technologies"?
    I think you’re confusing America and Chin. The CPC has an iron grip over everything Chinese companies do or create, and can mandate compliance in any way they see fit. This is different than the US where the constitution affords more protections. (Export controls are a slightly different matter.)

    Your continual China/CPC whitewashing can’t change this. 
    US government is the same. 
    GeorgeBMac
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