Through the acquisition of Arm, NVIDIA intends to strengthen its market dominance. Now the final stage of concluding an agreement on the acquisition of an architecture developer for mobile processors is underway.
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A corresponding deal may be concluded with the Japanese firm Softbank. The latter hopes to raise at least $ 8 billion from the sale of Arm Holdings. At the same time, this is a modest amount, considering that in 2016 the purchase cost $ 32 billion. The Japanese side will benefit not only in cash, but also in the quality of NVIDIA shares, which will make Softbank one of the largest holders of such shares. This condition is implemented so that the company through shares bears part of the risks involved in the transaction.
Such a significant acquisition is not possible without regulatory approval, says iReactor. With a high degree of probability, NVIDIA will be obliged not to stop licensing architectures for already connected clients.