The US has raised possible opposition NvidiaThe controversial acquisition of the UK-based arms manufacturer Arm from SoftBank, adds a new obstacle to a partnership that has already sparked intense opposition across the Atlantic.
The news that American authorities shared European concerns came a day later in the UK introduced an in-depth investigation into competition trends and national security reasons. The European Commission began its review at the end of last month.
While it is increasingly likely that regulators will try to block the deal, Nvidia said Wednesday that it still believes in “the best and the best available to Arm, with holders and companies”.
Nvidia revealed the push from U.S. regulators when they announced their quarterly findings on Wall Street at the end of Wednesday. It said the Federal Trade Commission had “expressed concerns” about Arm’s activities, and that it was discussing with the commission “solutions”.
The U.S. chip manufacturer did not disclose the cause of the protest, nor did it endorse the decision. The deal, announced 14 months ago, has drawn criticism from major American tech companies that are concerned that Nvidia will reduce access to Arm chip manufacturing, giving them unfair advantages in major chip markets such as data warehousing and automotive.
Nvidia has already provided an opportunity for UK and EU regulators to ensure that they do not discriminate against Arm customers, or alter Arm’s inventory, as long as they are fully aware of their responsibilities. But the donations were not enough to stop London and Brussels from pursuing further investigation, and the UK Competition and Markets Authority said it did not believe any “ethics” could be effective.
Nvidia could face another headline in China, with some chip manufacturers in the region reportedly complaining with the regulators about the deal. The company said in a statement on Wednesday that “a crackdown on dissent” has not yet been reached.
Collecting problems in finding Arm have failed to dampen the recent Wall Street interest in Nvidia. Its shares have risen by about 130 percent in the 14 months since the deal was announced, raising its market value by more than $ 730bn.
Strong deal has raised the price of Arm’s offer to $ 76bn, from $ 38.5bn when the deal was announced.
Recent results have found that Nvidia’s game businesses and data centers continue to shoot all cylinders, raising revenue by 50 percent from last year in the third quarter and making a 4 percent drop after the market in its segments.
Third-party revenue hit $ 7.1bn, or $ 270m more than Wall Street expected. Nvidia also predicted that the fourth quarter will earn $ 7.4bn, or $ 540m more than expected, as it manages to deal with chip hazards that have affected other parts of the sector.
Nvidia’s post-tax revenue rose 84 percent in the recent past to $ 2.46bn, or 97 cents a share. According to Wall Street estimates the company’s revenue per share was up to $ 1.17, six cents higher than expected.
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