According to a report from Bloomberg, there’s a chance that Nvidia may be “quietly” preparing to abandon the huge deal which would allow it to merge with Arm. Reasons cited suggest that the company has been unable to make much progress on the acquisition, which could likely be in relation to the enormous backlash that “team green” experienced when it originally announced the plan. Ultimately, it garnered the antagonism of not only the Federal Trades Commission, and the aforementioned companies, but also the EU as well, which also had concerns.
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Back in February 2021, Google and Microsoft disputed Nvidia’s merger, which many saw as a way for the California tech conglomerate to stifle competition and to tilt the market in its favor by having corporate power over one of the biggest tech firms in the world. The Bloomberg report goes on to say that the deal has faced backlash from China, where it can apparently veto the takeover if it were to go ahead. At this time, it does appear that, according to some, the acquisition will not be going ahead anyway.
There have been numerous blockades along the way since the announcement back in 2020. The EU halted its investigation into Nvidia at the end of 2021, which meant that the deal was on hold. While at the time it didn’t specify how long things would be paused, it was reported that it’s common practice in the European Commission, and doing so late last year may have partly been in relation to the latest COVID outbreak.
As it stands, there’s a good chance that Nvidia won’t be able to go through with its Arm merger. The company already has some other issues to attend to anyway, such as the fact that customers are struggling to get hold of the RTX 3050, which was only released yesterday.
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Source: Bloomberg
