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GPU manufacturer Nvidia seems to have abandoned their plans to acquire ARM Ltd., sources within the company have reportedly told Bloomberg {1}. This comes fresh off the heels of decisions by the European Commission (EC) and the UK's Competition and Markets Authority (CMA) deciding to review the acquisition further, with the EC setting a deadline of May 25th for the end of reviews. {2}
ARM - named after their main product, the Advanced RISC Machine - is a designer of RISC computer processor architectures which it then licenses out to various other companies which do the actual manufacturing of the processors - mainly used in smartphones, tablets and other devices not requiring a high-power CPU - such as Apple, Samsung, Qualcomm and the aforementioned Nvidia with their TEGRA chip which also powers the Nintendo Switch.
Nvidia believes that the acquisition would "provide{s} an opportunity to accelerate Arm and boost competition and innovation" {1}, whereas the EC and CMA consider the deal to stifle innovation and reduce choices while also potentially hiking up prices as the deal would give Nvidia significant control over the mobile device market. Additionally, Nvidia has been sued by the United States' Federal Trade Commission (FTC), with the US Department of Justice's Antitrust Division also voicing intentions to put a halt to deals that would lead to anti-competitive behavior.
As a result of the reporting, Nvidia's stock fell by 4.8%.
Overall, I think this seems to be a good choice. Competition is necessary to keep prices in check and Nvidia's apparent indifference to the cryptocurrency market paired with the latest graphics card being poorly reviewed decidedly needs a dampener.
Sources:
{1}: Reuters: Nvidia preparing to walk away from Arm acquisition - Bloomberg News
{2}:Reuters: EU antitrust decision on Nvidia's Arm deal set for May 25
ARM - named after their main product, the Advanced RISC Machine - is a designer of RISC computer processor architectures which it then licenses out to various other companies which do the actual manufacturing of the processors - mainly used in smartphones, tablets and other devices not requiring a high-power CPU - such as Apple, Samsung, Qualcomm and the aforementioned Nvidia with their TEGRA chip which also powers the Nintendo Switch.
Nvidia believes that the acquisition would "provide{s} an opportunity to accelerate Arm and boost competition and innovation" {1}, whereas the EC and CMA consider the deal to stifle innovation and reduce choices while also potentially hiking up prices as the deal would give Nvidia significant control over the mobile device market. Additionally, Nvidia has been sued by the United States' Federal Trade Commission (FTC), with the US Department of Justice's Antitrust Division also voicing intentions to put a halt to deals that would lead to anti-competitive behavior.
As a result of the reporting, Nvidia's stock fell by 4.8%.
Overall, I think this seems to be a good choice. Competition is necessary to keep prices in check and Nvidia's apparent indifference to the cryptocurrency market paired with the latest graphics card being poorly reviewed decidedly needs a dampener.
Sources:
{1}: Reuters: Nvidia preparing to walk away from Arm acquisition - Bloomberg News
{2}:Reuters: EU antitrust decision on Nvidia's Arm deal set for May 25
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