Bloomberg News reported on Tuesday that Nvidia Corp (NVDA.O) is planning to cancel its purchase of Arm Ltd from SoftBank Group Corp (9984.T) after proposing nearly $40 billion in 2020, citing people familiar with the situation.
According to the article, Arm has informed partners that it does not expect the acquisition to close, while SoftBank is preparing for an initial public offering (IPO) of the company.
An Nvidia spokesperson said the company continues to believe the acquisition “provides an opportunity to accelerate Arm and boost competition and innovation.” Arm and SoftBank did not immediately respond to requests for comment.
Nvidia shares were down 3.2% before the bell, leading to losses among chipmakers in a broadly weaker market.
Due to a boom in Nvidia shares fueled by the strong development of its data center-focused semiconductor division, the stock-heavy acquisition for Arm has increased in value since it was announced in September 2020.
In July of last year, Arm’s CEO stated that the business had considered going public, but that this would limit the company’s capacity to develop and invest.
