Re:FTC sues to block Nvidia-Arm merger
by ClumsyPilot on Thursday December 02, 2021 @08:54PM
(#29425710)
For the market to stay competitive, ARM must stay independent - we have enough oligopolies and monopolies already
Why does ARM need to be acquired by someone? If Softbank wants to unload it why can't they do an IPO?
Mostly because Jensen Huang was willing to pay a nice premium over what the market would otherwise offer. There are some cough synergies cough that Nvidia could have instrumented for higher profits, Jensen had a clear and enthusiastic vision about how to get there.
Softbank can still sell ARM to anyone including the public market, they just won't get as much money for them that way. Presumably.
This isn't a question of "will the economy collapse if X buys Y" it's a question of "Which will yeild the best outcome, Y being acquired by X or no". The exact definition of "best outcome" is where the entire battleground though.
It is quite difficult to see who actually could acquire ARM though - because of ARM's quite unique position, any of the potential acquirers are either customers (Apple, Nvidia, Qualcomm) who would be vertically integrated to beat out competitors or direct competitors (AMD, Intel). I think almost the only people who could buy ARM at this point would be TSMC.