October DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsWindows FixRecommendedWindows errors stealing your time? Find the fix fastScan stability, cleanup and performance issues.Fix NowOctober DealsAmazon USDeal season is back - check today's better picksAmazon US: current deals, useful picks and tech finds.See Picks×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

Arm–NVIDIA Deal: What Was Proposed, Why It Failed and What Happened Next

NVIDIA and SoftBank proposed a $40 billion Arm acquisition in 2020, but terminated it in February 2022 after regulatory challenges. Here is the timeline, the regulators' concerns and the terms that survived.
From TheFinanceBase Team5 min to read
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

NVIDIA did not buy Arm. NVIDIA and SoftBank announced a proposed $40 billion acquisition on September 13, 2020, but terminated the agreement on February 7, 2022, after regulators in the United States, United Kingdom and European Union raised substantial concerns. The transaction never closed. NVIDIA said it kept a 20-year Arm license, SoftBank kept a $1.25 billion prepayment, and Arm began preparing for a public offering.

The deal at a glance

Item What the announced agreement said
Buyer NVIDIA
Seller SoftBank
Target Arm, a licensor of processor designs and architectures
Announced value $40 billion in cash and NVIDIA shares; a proposed value, not a completed purchase price
Announcement date September 13, 2020
Regulatory condition Required approval from relevant competition and other authorities
Outcome Agreement terminated February 7, 2022; the acquisition did not close
Termination terms SoftBank retained a $1.25 billion prepayment; NVIDIA said it retained a 20-year Arm license

Arm is not primarily a finished-chip or device manufacturer. It licenses processor architectures and designs to companies that build products such as mobile chips, automotive systems, datacenter processors and other electronics. NVIDIA was itself an Arm licensee. That upstream supplier role made the proposal a vertical merger: a company competing in downstream chip markets sought to own an important input used by rivals.

Timeline: announcement to abandonment

  1. September 13, 2020: NVIDIA and SoftBank announced the proposed $40 billion acquisition, combining cash and NVIDIA stock and making clear that regulatory approvals were required.
  2. July 2021: The UK Competition and Markets Authority (CMA) sent a report to the Secretary of State. Its initial competition concerns focused on whether the combined company could restrict rivals’ access to Arm intellectual property (IP).
  3. September 8, 2021: The European Commission received the merger notification.
  4. October 27, 2021: The Commission opened formal proceedings on the transaction.
  5. November 2021: The UK Secretary of State referred the transaction to an in-depth Phase 2 investigation covering competition and national-security issues.
  6. December 2, 2021: The US Federal Trade Commission (FTC) sued to block the deal. Its complaint alleged harms in several markets and risks involving information supplied by Arm licensees.
  7. February 7, 2022: NVIDIA and SoftBank terminated the agreement, citing significant regulatory challenges.
  8. February 8, 2022: The CMA said it intended to cancel its investigation. The European Commission recorded NVIDIA’s withdrawal of its notification and abandonment of the concentration.
  9. February 11–14, 2022: The FTC case record was updated, and the Commission dismissed its complaint after NVIDIA ended the proposed acquisition.

What NVIDIA and SoftBank said they were proposing

The announced transaction valued Arm at $40 billion and would have paid SoftBank with a combination of cash and NVIDIA shares. NVIDIA’s stated strategic rationale was to combine its artificial-intelligence and accelerated-computing capabilities with Arm’s processor technology and broad ecosystem.

Those were the parties’ proposed benefits, not realized results. Because the agreement was terminated, there was no NVIDIA-owned Arm business, no completed purchase price and no post-merger operating record to evaluate.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Why Arm’s ownership mattered to regulators

Arm’s business model sits between technology design and finished products. It licenses processor technology to many companies, including firms that compete with one another and with NVIDIA. Regulators therefore examined whether an owner that competed downstream could use control of that upstream input to disadvantage customers or rivals.

US: FTC allegations

The FTC’s complaint alleged that the acquisition could harm competition in three worldwide markets where NVIDIA competed using Arm-based products:

  • Processors for high-level advanced driver-assistance systems in passenger vehicles.
  • Data-processing-unit (DPU) SmartNICs for datacenter servers.
  • Arm-based central processing units (CPUs) for cloud providers.

The complaint also alleged that ownership could give NVIDIA access to competitively sensitive information shared by Arm licensees, including rivals. In the FTC’s view, NVIDIA could have weaker incentives to support innovations that threatened its own products or to maintain equal access for competing licensees.

Rank #2
Digilent Zybo Z7: Zynq-7000 ARM/FPGA SoC Development Board (Zybo Z7-20)
  • Zybo Z7 comes in two APSoC variants: Zybo Z7-10 features Xilinx XC7Z010-1CLG400C. Zybo Z7-20 features the larger Xilinx XC7Z020-1CLG400C. Either variant also has the option to add the SDSoC voucher.
  • A feature-rich, ready-to-use embedded software and digital circuit development board with a rich set of multimedia and connectivity peripherals to create a formidable single-board computer
  • Built around the Xilinx Zynq-7000 AP SoC, with 650MHz dual-core Cortex-A9 processor and DDR3 memory controller with 8 DMA channels
  • On board user interfaces include 6 push buttons, 4 slide switches, 5 LEDs, 2 RGB LEDs, and more
  • Expansion opportunities with six Pmod connector ports, over 30 FPGA I/O, four Analog capable 0-1.0V differential pairs to XADC, and more

FTC Bureau of Competition Director Holly Vedova said on December 2, 2021: “This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals.” That statement and the complaint describe the agency’s allegations. They were not a final judicial finding on the merits. After the transaction ended, the FTC dismissed the administrative complaint.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

UK: competition and national security

The CMA’s preliminary view was that the merger could result in a substantial lessening of competition. It said the merged company might have both the ability and the incentive to harm NVIDIA’s rivals by restricting access to Arm IP.

Separately, the UK Secretary of State advanced the matter to a Phase 2 investigation on national-security as well as competition grounds. The national-security referral did not itself establish that a security harm had occurred; it authorized a deeper government review. Once the deal was abandoned, the government confirmed that the CMA intended to cancel its investigation.

Rank #3
Waveshare Luckfox Lyra Plus RK3506G2 Linux Micro Development Board, Integrates Tripe-core ARM Cortex-A7 and ARM Cortex-M0 Processors, with Ethernet Port, Without Header
  • There are several options for this item, this option is without header. Please click the image 2 to check the package content.
  • Luckfox Lyra is a cost-effective Linux micro development board based on the Rockchip RK3506G2 to provide a simple and efficient development platform. Onboard multiple high-speed interfaces including MIPI DSl, RMll, USB, etc. to meet various application scenarios.
  • The low-speed interfaces utilize Rockchip Matrix l0 design which supports multiplexing 98 function siqnals on GPlO pins, and can freely combine PWM, UART, 12C, SPl, and l2S for quick development and debugging.
  • Tripe-core ARM Cortex-A7 32-bit core, with integrated VFP to support single- and double-precision floating-point operations. Built-in ARM Cortex-M0 MCU design, supports SMP and AMP configuration. Built-in 128MB DDRL3 for multi-core applications
  • The low-speed interfaces adopt Rockchip Matrix IO design, which allows rich function signals to share the limited chip pins, making peripheral circuit adaptation more flexible. Built-in audio and video codec, supports multiple audio inputs and outputs, providing high-quality audio playback and recording functions

European Union: proceedings ended after withdrawal

The European Commission received the notification on September 8, 2021 and opened formal proceedings on October 27. On February 8, 2022, NVIDIA informed the Commission that it had withdrawn the notification and abandoned the concentration. The EU process therefore ended because the parties withdrew the proposed transaction, not because the Commission issued a final prohibition decision after a completed merits review.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What termination changed—and what it did not

Termination restored the pre-deal ownership structure rather than creating a combined NVIDIA–Arm company. SoftBank retained the $1.25 billion prepayment specified in the termination announcement. NVIDIA said it retained a 20-year Arm license. The announcement does not establish that the license was exclusive, disclose all of its commercial terms or prove that it remains unchanged today.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Arm was to prepare for a public offering. The material establishing the transaction and its termination does not establish Arm’s current ownership percentages, current market value or present-day licensing terms after that later process, so those should not be inferred from the failed acquisition.

Rank #4
2Pcs Raspberry Pi Pico Development Board, Raspberry Pi RP2040 Dual-core ARM Cortex M0+ Processor, Running Up to 133 MHz, Support C/C++/Python, 2MB Quad SPI Flash Integrated with SPI/I2C/UART Interface
  • The Raspberry Pi Pico is a beginner-friendly microcontroller board that uses MicroPython to give you a taste of the Internet of Things and microcontrollers. The RP2040 is a well-designed microprocessor that can be utilized in almost any Internet of Things project. It has enough power to complete the task quickly.
  • 【Raspberry Pi RP2040 Microcontroller】Raspberry Pi Pico features Dual-core ARM Cortex M0+ processor, flexible clock running up to 133 MHz. With 264KB of SRAM, and 2MB of on-board Flash memory.Supports up to 16 MB of off chip flash memory via a dedicated QSPI bus
  • 【Multiple Software Support】Pico has rich and complete software support, it comes with a complete Rasberry Pi official C/C++ SDK, Micropython SDK.The programming and burning of Pico need to be carried out on the computer. Supported operating systems and computers include:Raspberry Pie with Raspberry Pi OS,Other platforms equipped with Debian based Linux system Computer with MacOS, Computers with Windows, etc.
  • 【Rich Hardware Interface】Raspberry Pi Pico has 30 GPIO pins, 4 pins for analog signal input and 26 × multi-function GPIO pins, 2 × SPI, 2 × I2C, 2 × UART, 3 × 12-bit ADC, 16 × controllable PWM channels.USB 1.1 supported by host and device, The installation mode can be flexibly selected by users to facilitate welding with other development boards.
  • 【Build Project in Tiny Size】Only 2.1cm*5.1cm ( as small as your thumb). Pico has been designed to use either soldered 0.1" pin-headers or can be used as a surface-mountable 'module'.

How to interpret the competing claims

Perspective Claim or concern Status
NVIDIA and SoftBank Combining NVIDIA’s AI and accelerated-computing capabilities with Arm technology could create strategic benefits. Companies’ rationale for a proposal; never tested through a completed merger.
FTC Control of Arm could harm competition in three markets, expose sensitive licensee information and reduce incentives to support rival innovation. Allegations in the FTC complaint; not a final merits judgment.
UK CMA and government The merged company might restrict rivals’ access to Arm IP; national-security issues also warranted review. Preliminary competition concerns and a government referral, followed by cancellation after abandonment.
European Commission The transaction warranted formal merger proceedings. Proceedings ended after NVIDIA withdrew its notification; no final prohibition decision was issued.

Did NVIDIA buy Arm?

No. The proposed $40 billion acquisition was terminated in February 2022 before closing. NVIDIA retained a long-term Arm license, but that is different from owning Arm or controlling the company.

Why this case remains important

The dispute illustrates why vertical mergers can draw scrutiny even when the buyer and target do not sell identical products. A supplier of widely licensed processor IP can influence the competitive conditions faced by many downstream companies. Regulators focused on access, information flows and innovation incentives, while the parties presented the transaction as a way to combine complementary technologies. Since the agreement ended, those competing theories were not resolved by a completed merger or a final merits judgment.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free tools Windows power users keep installed

One-click scans. No signup required.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase07 MAR 2625 minWhat Is a 457 Plan?
  2. The Money DeskBlogTheFinanceBase07 MAR 2621 minTime Value of Money: What It Is and How It Works
  3. The Money DeskBlogTheFinanceBase07 MAR 2627 minAre You Living in One of These Top 10 Most Expensive Cities to Retire?
Recommended PC Tool
Recommended PC Tool
PC Slower Than It Used to Be?Free scan - under a minute
Crashes, No Sound, or Screen Glitches?Free driver scan

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.