SoftBank Group Corporation's sale of Arm Ltd to U.S. chipmaker Nvidia Corp has collapsed and now Arm would plan for an IPO instead of the sale, which would have been worth as much as $80 billion.
The U.S. Federal Trade Commission sued to block it last year, arguing that competition in the nascent markets for chips in self-driving cars and a new category of networking chips could be hurt if Nvidia carried out the purchase.
The buyout is also under the scrutiny of British and EU regulators amid concerns that it could push up prices and reduce choice and innovation. The termination of the deal could also affect a legal dispute between Arm's China joint venture and Allen Wu, the joint venture's original CEO.
Arm licenses its architecture and technology to customers such as Qualcomm Inc, Apple and Samsung Electronics Co Ltd that design chips for devices from mobile phones to computers.
The value of the deal, which depended on Nvidia's stock price, was originally pegged at about $40 billion and rose with Nvidia's stock price to as $80 billion late last year.
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