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Nvidia, Arm CEOs Talk Troubled Merger

Daniel Nenni

Admin
Staff member
Personally I think this merger would be disruptive which is a good thing. Unfortunately without the support from major ARM customers: Mediatek, Qualcomm, Apple, Samsung, etc... I do not see it going through. If the merger does fail I think ARM will IPO, no problem and continue down the path of market dominance. Staying under Softbank would be a big mistake so something will happen, absolutely.

ARM Nvidia Merger.jpg


Nvidia CEO Jensen Huang, flanked by Arm CEO Simon Segars, made the case for why the computing giants should be allowed to merge in a deal valued at $40 billion during this week’s Six Five Summit. In a Q&A session moderated by Moor Insights and Strategy founder and principal analyst Patrick Moorhead, Huang and Segars shared their vision for a connected future powered by Arm and Nvidia technologies, while simultaneously appealing to regulators to allow the troubled deal to move forward.

 

Daniel Payne

Moderator
Arm being acquired by Softbank never made sense to me, because it lacked any synergy. Arm going IPO makes the most sense, as they maintain their independence, which their customers really want to happen.
 
Arm being acquired by Softbank never made sense to me, because it lacked any synergy. Arm going IPO makes the most sense, as they maintain their independence, which their customers really want to happen.
But do we believe an IPO will cover what SoftBank paid for ARM in the first place - or what nVidia offered ? Perhaps it's possible in today's markets ... From my reading of the situation, now all the IoT fluff from the original acquisition has blown away, this is a purely financial concern for SoftBank now - their only concern being to sell at a profit.

While I think most of us would like ARM to be truly independent (and regret the SoftBank rubicon being crossed), if a company becomes immune from takeover, presumably that might lower somewhat its stock market valuation ?
 

Daniel Payne

Moderator
But do we believe an IPO will cover what SoftBank paid for ARM in the first place - or what nVidia offered ? Perhaps it's possible in today's markets ... From my reading of the situation, now all the IoT fluff from the original acquisition has blown away, this is a purely financial concern for SoftBank now - their only concern being to sell at a profit.

While I think most of us would like ARM to be truly independent (and regret the SoftBank rubicon being crossed), if a company becomes immune from takeover, presumably that might lower somewhat its stock market valuation ?
SoftBank paid some $31B for Arm, when Arm only had $1.5B in revenue, wow, that was a high price. For an IPO of Arm, I think that most investors understand that their cell phone is using an Arm-licensed chip inside, so hopefully SoftBank would recoup their investment.
 

Daniel Nenni

Admin
Staff member
Softbank has also put in a lot of R&D money with a hands off approach and knowing Simon Segars that money has been well spent. ARM IPO in 2022!
 
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