It is estimated that the American giant Nvidia did not expect that the acquisition of British ARM was so difficult. First it was the disapproval of the UK, EU and other regulatory agencies, and then Qualcomm, Google, Microsoft and other peers overtly obstructed; I thought that the US regulators would be the strongest supporters behind this transaction, but the “family” FTC One move that almost made Nvidia completely give up, and after so busy working for so long, was it the wrong payment after all?
According to reports, in the past few days, the US FTC agency initiated a lawsuit against Nvidia on the grounds that it suspects that Nvidia’s acquisition of ARM will create a market monopoly. To put it simply, the FTC feels that the acquisition of Nvidia will harm the interests of Americans. Considering that Google and Microsoft have opposed it before, this is likely to be related to the opinions of these colleagues.
According to Nvidia, since the acquisition in September 2020, there has been a lot of controversy from the outside world, but they have the idea that as long as the United States can nod and agree, then all problems can be resolved slowly. Now that the FTC suddenly releases a signal of opposition, it will undoubtedly become “the last straw to overwhelm the camel.”
At the beginning, Nvidia set aside 18 months for the review of regulatory agencies in various countries, and it is estimated that the transaction will be completed in 2022. However, the FTC has expressed opposition this time, and the relevant investigation action will be launched in August 2022, which is 5 months later than the deadline set by Nvidia.
As early as late November, Nvidia, which “receives the wind”, stated that if everyone insists on opposing the transaction, especially when the official regulatory agency suspends the transaction, then Nvidia paid US$1.25 billion in advance. 8 billion yuan) has also been “flooded”.
However, this small amount of money is nothing to Nvidia. Since the beginning of this year, the capital circle has set off an upsurge of “meta universe”, and Nvidia, which has many high-end hardware devices, has developed the Omniverse technology platform, which is regarded as the entrance to explore the meta universe, and therefore it is sought after by capital. .
Year-to-date, Nvidia’s share price has risen from around US$130 to the current US$321, an overall increase of more than 146%. The company’s market value has exceeded US$800 billion, making it the seventh-largest company in the world by market capitalization. Think about it this way, even if you don’t get ARM, Nvidia’s own hardware strength is enough to support the sky.