Nvidia Negotiates Large Stake in Arm After IPO

Nvidia is in negotiations to become the main shareholder in chip technology company Arm after a possible IPO, according to the Financial Times. The IPO was planned for September by current owner SoftBank.
Negotiations are mainly about Nvidia’s entry point as an important investor in Arm, which is to be spun off. Nvidia would like to get in on a share value that brings the total value of Arm to an amount of between $35 billion and $40 billion. Arm itself values the company at more than $80 billion.

Nvidia’s Racy Move

Nvidia’s possible move is racy, as the company previously saw a $66 billion acquisition of Arm fail last year. Nvidia did not receive permission for the acquisition from major regulatory authorities such as the EU, but also those in the UK.
Regulators indicated that the acquisition could limit access to Arm technology by other chip manufacturers, which could drastically damage mutual competition.

SoftBank CEO Involved in Negotiations

It is the intention that not only Nvidia will get a large interest in the privatized Arm. According to the sources of the Financial Times, other manufacturers, such as Intel, are also intended to take a stake in Arm.
The investments in Arm would also be intended to compensate for the reduced interest of the Japanese parent company SoftBank in the company that was spun off after the IPO. CEO Masayoshi Son would personally be involved in negotiations with Nvidia and other companies.
Furthermore, the investments must ensure that Arm can continue to grow after the IPO. SoftBank is hoping to secure a strong future for the company and ensure that it can remain competitive in the chip technology industry.
Nvidia’s negotiations with Arm come after a failed attempt at a $66 billion acquisition of the company last year. The company is now looking to become a major shareholder in Arm after a potential IPO. Other chip manufacturers, such as Intel, are also looking to take a stake in the company.
SoftBank CEO Masayoshi Son is personally involved in negotiations with Nvidia and other companies. The investments in Arm are intended to compensate for the reduced interest of the Japanese parent company SoftBank in the company that was spun off after the IPO.
The investments must ensure that Arm can continue to grow after the IPO and remain competitive in the chip technology industry. Arm values the company at more than $80 billion, while Nvidia is looking to get in on a share value that brings the total value of Arm to an amount of between $35 billion and $40 billion.