SoftBank is approaching an agreement to sell Arm Holdings to Nvidia, the world’s largest graphics chip maker Wall Street Journal.
According to those familiar with the matter, a cash and stock deal between the two companies could occur early next week and will be valued at over $ 40 billion, which could potentially be the largest deal ever in the semiconductor industry. SoftBank originally bought Arm for $ 32 billion four years ago.
The two companies have reportedly been in talks for several weeks about a possible agreement, and if it is completed, there may be control among antitrust regulators since Nvidia itself is currently a customer of Arm. Companies that use Arm technology will also not be in favor of an agreement without explicit assurance that Arm’s instruction set will continue to be available for equal licensing opportunities.
SoftBank reportedly listed Apple to see if it was interested in acquiring Arm, but Apple had not planned to pursue a bid due to Arm’s licensing requirements and possible regulatory concerns.
Apple is licensing Arm technology for the A-Series chips used in iPhones and iPads, and the company plans to switch to Arm-based Mac series chips later this year. A potential sale to Nvidia is unlikely to have a major impact on Apple’s or Apple’s licensing of Arm technology.