Thursday, January 7th 2021

NVIDIA Acquisition of Arm to be Investigated by UK Regulator

NVIDIA's planned acquisition of Arm was one of 2020's defining moments for the tech industry, and many articles have already been written on the possible industry-wide consequences of this acquisition. However, the resulting NVIDIA company could raise some questions as to business practices and competition - critics, technologists, and lobbyists have already been working hard in calling the deal's attention to regulating authorities. And that seems to be paying off, as UK's Competition and Markets Authority announced Wednesday that it plans to investigate NVIDIA's proposed acquisition of British chip designer Arm.

This effort by the CMA will take place in a staggered way, where the regulator is for now asking for third party input on the deal and its consequences for British competition and the tech industry at large, before launching its official probe later this year. As is always the case with these sort of deals, some in the field expect the deal to be blocked, including Arm co-founder Hermann Hauser; others, however, speak to its eventual success. NVIDIA's share price has kept dropping ever since the announcement, from a high of $536.31 to $506.21 at time of writing.
Source: CNBC
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28 Comments on NVIDIA Acquisition of Arm to be Investigated by UK Regulator

#1
DeathtoGnomes
Is this UK's form of anti-trust or their way to manipulate stock prices?
Posted on Reply
#2
Verpal
My guess is UK thought Softbank got away too easily last time, thanks to much smaller market capitalization of ARM at the time.

But now.... ARM seems to be competing with x86 on all platforms, I bet UK government want to gain more leverage in the deal instead of blocking it outright.
Posted on Reply
#3
watzupken
Nvidia should have seen this coming considering ARM is generally a neutral company that develops SOC and sells licenses to use it to other companies. Nvidia certainly is not a neutral company and based on their business practice is likely going to cause issues over time. This acquisition is not going to be a smooth one and will likely take some time to complete if it finally goes through. China is likely another country that will not want ARM to fall under a US company because they may end up losing access to ARM chips.
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#4
RoutedScripter
YES! I just let out a big yell! What a great news to wake up in the morning!
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#5
Xaled
Good news. The stronger Nvidia gets the higher GPU prices go and the less we get for our money. Any obstacle in their way is good news for us customers.
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#6
TheUn4seen
The answer is money. Money is what they want, because they want more money in order to be in possession of more money. UK government has too little money and they want more of it.
This seems to be the motivation behind the vast majority of so-called regulatory actions. ARM made money for the UK government and they are afraid the stream will dry out so they want to force nVidia to give them some money.
Did I mention the UK government wants more money? It has nothing to do with saving consumers from a monopoly, governments are absolutely fine with monopolies, as long as they get their piece of the money cake.
Posted on Reply
#7
Vya Domus
XaledGood news. The stronger Nvidia gets the higher GPU prices go and the less we get for our money. Any obstacle in their way is good news for us customers.
This has little to nothing to do with desktop GPUs. If anything the only thing that can get more expensive is your phone.
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#8
Vayra86
TheUn4seenThe answer is money. Money is what they want, because they want more money in order to be in possession of more money. UK government has too little money and they want more of it.
This seems to be the motivation behind the vast majority of so-called regulatory actions. ARM made money for the UK government and they are afraid the stream will dry out so they want to force nVidia to give them some money.
Did I mention the UK government wants more money? It has nothing to do with saving consumers from a monopoly, governments are absolutely fine with monopolies, as long as they get their piece of the money cake.
How do you frame that perspective in the fact that the UK has chosen to pay a multi billion dollar bill to the EU for leaving?

Apparently there's more in it than money... This country voted in favor of the biggest loss of money in its own history.
Posted on Reply
#9
Lomskij
Just curious where do the Brits stand from legal perspective - isn't it a Japanese company selling an asset to an American company?
Posted on Reply
#10
TheUn4seen
Vayra86How do you frame that perspective in the fact that the UK has chosen to pay a multi billion dollar bill to the EU for leaving?

Apparently there's more in it than money... This country voted in favor of the biggest loss of money in its own history.
The thing with "brexit" is they really didn't want to. Some populists wanted to get easy votes by playing the "we give to the EU far more than we get from it" card (a sentiment which was quickly debunked as an outright lie, but the media outlets weren't really interested in explaining the deal in times of rising nationalism) and, long story short, people who didn't know what the EU was voted in a way the populists claimed they want, but didn't really want and certainly didn't expect the vote to go the way it went.
So, the UK didn't really choose to do this. Some politicians wanted to push their own agenda and it backfired in a horrible way - some of the most prominent figures in UK politics had so much trust in that move that they immediately jumped from the sinking ship.
They wanted more money but accidentally did something which cost them a lot of money, that's why they really need more of it now and scramble to find it wherever they can.
Posted on Reply
#11
chodaboy19
Nvidia did say they estimated this to take around 18 months to complete. Nothing out of the ordinary so far.
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#12
Muser99
TheUn4seenThe thing with "brexit" is they really didn't want to. Some populists wanted to get easy votes by playing the "we give to the EU far more than we get from it" card (a sentiment which was quickly debunked as an outright lie, but the media outlets weren't really interested in explaining the deal in times of rising nationalism) and, long story short, people who didn't know what the EU was voted in a way the populists claimed they want, but didn't really want and certainly didn't expect the vote to go the way it went.
So, the UK didn't really choose to do this. Some politicians wanted to push their own agenda and it backfired in a horrible way - some of the most prominent figures in UK politics had so much trust in that move that they immediately jumped from the sinking ship.
They wanted more money but accidentally did something which cost them a lot of money, that's why they really need more of it now and scramble to find it wherever they can.
The UK followed the results from a democratic referendum on EU membership, the results of EU elections and two full General Elections which all clearly signalled that the majority of UK voters wished to leave the EU. The UK then left the EU. It is called democracy!
Posted on Reply
#13
MrGRiMv25
To be fair, that majority was something like 52/48% for/against so not exactly an overwhelming majority but still nonetheless it was one. Still, I wasn't one in the leave camp, and just have to live with it now. Boris is just as useless as ever, so probably is just a case of trying to keep ARM in Cambridge, all while sticking his god damn thumb up at every opportunity he can....
Posted on Reply
#14
Unregistered
I voted to leave, a country should be in control of its own laws.

As to ARM, not really sure if it is a good thing or not. but i'm sure anyone saying it is to do with the UK gov wanting more money don't know what they are on about. It's more likely to be because they are worried Ngreedia will buy ARM and under influence from the American GOV stop licencing to china, and other possible reasons.
#15
Xaled
Vya DomusThis has little to nothing to do with desktop GPUs. If anything the only thing that can get more expensive is your phone.
I didn't mean directly but yeah that is another this trade shouldn't blocked
Posted on Reply
#16
Fluffmeister
ARM is so typically British in many ways, I wonder how many knew it was a British company in the first place? It's what we do, create world leading tech/brands then happily sell it off to the highest bidder.

And yeah at least we respect democracy, but we were doing that long before the EU or US of A existed. Bastion of democracy hehe what a joke... even their President doesn't believe that.

We just create the worlds most popular sports, make sure people learn English, laugh that we get "nul points" at Eurovision, have a nice cup of tea and move on with our lives.
Posted on Reply
#17
TheUn4seen
Muser99The UK followed the results from a democratic referendum on EU membership, the results of EU elections and two full General Elections which all clearly signalled that the majority of UK voters wished to leave the EU. The UK then left the EU. It is called democracy!
Democracy is a popularity contest, not a contest of merit. Populists won because they had more charisma, bought more time on the television and hired better PR agencies to convince the average uninformed voter, not because their separatist ideas were smart. It was fairly obvious they didn't expect to win and were the most surprised people in the UK when they did. But, no matter which brand of lunacy won, the effect is a sore lack of money forcing the farcical scrambling for any source of income they can put their hands on. Just add Benny Hill music and you get post-brexit UK politics in a nutshell.
Posted on Reply
#19
Totally
watzupkenNvidia should have seen this coming considering ARM is generally a neutral company that develops SOC and sells licenses to use it to other companies. Nvidia certainly is not a neutral company and based on their business practice is likely going to cause issues over time. This acquisition is not going to be a smooth one and will likely take some time to complete if it finally goes through. China is likely another country that will not want ARM to fall under a US company because they may end up losing access to ARM chips.
I wouldn't be surprised it if almost immediately after they took the reigns, Nvidia releases an update for all arm products to the effect of "this product is not supported in a non-Nvidia environment and some or all features are disabled.
Posted on Reply
#20
AnarchoPrimitiv
Muser99The UK followed the results from a democratic referendum on EU membership, the results of EU elections and two full General Elections which all clearly signalled that the majority of UK voters wished to leave the EU. The UK then left the EU. It is called democracy!
Yes, democracy is the vehicle by which this occurred, but according to numerous peer-reviewed research based on empirical data, Brexit happened based on xenophobia and anti-immigration sentiment which was largely fueled by Right-Wing Authoritarianism and Social Dominance Orientation....the idea of the "polish plumber". This offers a compelling possible explanation as to why opinion polls prior to brexit showed that it probably wouldn't pass, namely that many people were unwilling to admit to a stranger their feelings on immigration and other related issues. "Large numbers of Eastern Europeans, especially from Poland, came to the U.K. after 2007. The British had expected other European countries to open their borders at the same time, but they did not. This left the U.K. as the main destination for a wave of migration that was expected to have been distributed across Germany, France, and other Western European nations. These migrants tended to split into two groups. The more educated white-collar workers settled mainly in London and the South East, and the blue-collar workers for the most part moved out to the regions—which, nine years later, were predominantly in favor of Brexit." (Source #1). Interestingly, multiple studies found that support for brexit was linked to two key personality traits/types that have historically been linked to xenophobia and nationalism: Right-Wing Authoritarianism(sometimes referred to as Authoritarian Personality Disorder) and Social Dominance Orientation, particularly authoritarian aggression. These very two personality types have, for example, been shown to be the unifying commonality that transcends Age, gender, class and religion among Trump supporters in the United States, and has been found to be perhaps the best possible explanation for the recent rise in right-wing governments and xenophobia in the western world in general (source #2 and #3)

"The Leave campaign in the U.K., which advocated exiting the European Union, emphasized anxiety over immigration and the need to take control of the U.K.'s borders. Citizens who expressed concerns about immigration to the U.K. were more likely to vote to leave. Two correlational studies examined the previously unexplored question of whether the Brexit vote and support for the outcome of the E.U. referendum were linked to individual predictors of prejudice toward foreigners: British collective narcissism (a belief in national greatness), right wing authoritarianism, and social dominance orientation. The results converged to indicate that all three variables were independently related to the perceived threat of immigrants and, via this variable, to the Brexit vote and a support for the outcome of the E.U. referendum. These variables explained the variance in the perceived threat of immigrants and support for the Brexit vote over and above other previously examined predictors such as age, education, or ethnicity, as well as, national identification and national attachment." (source #4)

Citation:

Source #1: The Truth About Brexit and Xenophobia
medium.com/s/story/https-medium-com-tswriting-the-truth-about-brexit-e3e5bcdadfbe

Source #2: Group-Based Dominance and Authoritarian Aggression Predict Support for Donald Trump in the 2016 U.S. Presidential Election
journals.sagepub.com/doi/10.1177/1948550618778290

Source #3: The authoritarian-conservatism nexus
www.sciencedirect.com/science/article/pii/S2352154620300401

Source #4: The Relationship between the Brexit Vote and Individual Predictors of Prejudice: Collective Narcissism, Right Wing Authoritarianism, Social Dominance Orientation
www.frontiersin.org/articles/10.3389/fpsyg.2017.02023/full#h5

P.S. I'm just relaying the information offered by peer-reviewed research due to the fact that the topic of the "cause of brexit" was raised by other users first and my only interest in doing this is presenting the conclusions reached by researchers using empirical data. These are not my personal opinions, so I ask that nobody treat them as such, and by no am I debating or wish to offend anyone, if you take issue with these explanations, feel free to contact the researchers who conducted the research and wrote the papers.
Posted on Reply
#22
the54thvoid
Super Moderator
Here's the line:

--------------------------------------------------

Please don't cross it with anymore political musings. I appreciate we all have sentiments and opinions but this forum is not the place to air them.
Posted on Reply
#23
Patr!ck
THIS IS THE BEGINNING OF THE END FOR NVIDIA. They will NEVER get their hands on ARM and Intel will enter the high end GPU market quite soon. Your time has come NVidia for you to be pushed aside. You've been a greedy (3060 having more Vram than 3080, lol) and evil company during all these years. It is time for a third competitor and I can't wait for my full Intel build later this year.
Posted on Reply
#24
Muser99
Vayra86The same democracy that was supposed to keep Trump in office, yes ;) Populism, it is well documented and often floats on lies and deceit. Often - always.

Its the main weakness of a democracy - the majority isn't smart enough to really understand what's happening. Its the same majority that brings out the bad stuff in algorithms on social media. The majority vote works much the same there: most likes gets most attention - there is no real selection on what has any merit and what does not. So, the incredible looks as interesting as the reality, and is often more attractive.

At the same time, this degree of freedom of thought and direction is what makes a democracy strong. What's needed is people of good intentions, and you need systems that support only those kinds of people, and punishes those who are not of good intentions. The checks and balances.

The idea that the majority is always right, is a fallacy and history is full of proof. The majority vote has caused WW2, as well, for example.
It's call democracy. Suck it up!
Posted on Reply
#25
Dimi
Patr!ckTHIS IS THE BEGINNING OF THE END FOR NVIDIA. They will NEVER get their hands on ARM and Intel will enter the high end GPU market quite soon. Your time has come NVidia for you to be pushed aside. You've been a greedy (3060 having more Vram than 3080, lol) and evil company during all these years. It is time for a third competitor and I can't wait for my full Intel build later this year.
Lol you have no idea how big Nvidia is.
They are going to own EVERYTHING you can think of. From self driving cars to your medical records.

We love our Nvidia Shield TV's.
Posted on Reply
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