ARM owner Softbank has announced it is shelving the sale of the chipmaker to NVIDIA after a swath of regulatory hurdles made approval of the sale less likely, reports Reuters. The news is a blow to Softbank, which bought ARM in 2016 for $32 billion. An $80 billion sale would have netted it a hefty profit.
The decision to abandon the sale came after the Federal Trade Commission filed suit to block it in December, citing competition fears. Reuters reports China, the European Union, and the United Kingdom had also so far failed to approve the sale. As chip shortages continue to impact the global supply chain, governments are the world have grown wary of any moves that could reduce competition and innovation in the marketplace.
In a press release, Softbank CEO Masayoshi Son said, “Arm is becoming a center of innovation not only in the mobile phone revolution, but also in cloud computing, automotive, the Internet of Things and the metaverse, and has entered its second growth phase. We will take this opportunity and start preparing to take Arm public, and to make even further progress.”
The release states that ARM will go public sometime within the fiscal year ending March 31, 2023, with Reuters reporting the company will likely debut on the Nasdaq.