Nvidia in talks to become anchor investor in Arm IPO - FT
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Picture Caption: The symbol of NVIDIA is displayed during SIGGRAPH 2017, held in Los Angeles, California, USA on July 31, 2017. The image was taken by Mike Blake and is filed.
According to the Financial Times, Arm, a company that designs chips, is currently engaged in discussions with Nvidia to potentially secure them as a significant investor. These discussions come as Arm pushes forward with its intentions to carry out a listing in New York, potentially as early as September.
Nvidia has recently engaged in discussions with Arm, a company owned by SoftBank, regarding securing a lasting investment in Arm's initial public offering. In June, Reuters disclosed that Arm was in conversation with over 10 different entities, including established collaborators like Intel.
Nvidia and Arm refrained from providing any statement to Reuters.
The two companies are in discussions about the worth of the firm, with Nvidia showing a preference for a share that would give the firm a value ranging from $35 billion to $40 billion. This information comes from a source mentioned in the Financial Times report.
According to the report, Arm is aiming for a valuation that is in the vicinity of $80 billion.
Last year, regulators rejected Nvidia's intended purchase of Arm valued at $66 billion due to concerns about competition.
According to individuals familiar with the matter mentioned in the Financial Times, Nvidia and Arm have recently suggested making a modest minority investment of several hundred million dollars. They have also taken the initiative to reach out to regulators in order to alleviate any concerns beforehand.
Rishabh Jaiswal from Bengaluru and Anton Bridge from Tokyo have provided the report, which was then edited by Savio D'Souza, Kim Coghill, and Muralikumar Anantharaman.
