(Reuters) – Chip designer Arm is reportedly in discussions with tech giant Nvidia to become an anchor investor ahead of its upcoming New York listing, which is expected to take place in September. The Financial Times reported the news on Wednesday.
Nvidia is the latest company to engage in talks with Arm, which is owned by Softbank, regarding a long-term stake in the company’s initial public offering. According to a report by Reuters in June, more than 10 companies, including existing partners like Intel, have been in discussions with Arm.
At the time of reporting, neither Nvidia nor Arm had provided a comment to Reuters.
The negotiations between the two firms are currently focused on valuation. Sources mentioned in the Financial Times report indicate that Nvidia prefers a stake that would value Arm at around $35 billion to $40 billion. However, Arm is pushing for a valuation closer to $80 billion.
It is worth noting that last year, regulators rejected Nvidia’s proposed acquisition of Arm, which was valued at $66 billion, due to concerns about competition.
In an effort to address any potential regulatory concerns this time around, Nvidia and Arm have proposed a minority investment in the range of a few hundred million dollars. Additionally, they have reached out to regulators in advance to discuss and mitigate any fears or objections, according to sources close to the discussions cited by the Financial Times.
Reporting for this article was conducted by Rishabh Jaiswal in Bengaluru and Anton Bridge in Tokyo. Editing was performed by Savio D’Souza and Kim Coghill.
Credit: The Star : Tech Feed
