Nvidia (NASDAQ:NVDA) stock is slipping on Friday following news that its Arm merger is unlikely to reach fruition.
Let’s dive into the details of today’s news below!
- What set off today’s news is the Federal Trade Commission (FTC) launching a lawsuit to stop the merger.
- Holly Vedova, the FTC Bureau of Competition Director, says the lawsuit will “prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies.”
- Nvidia argues the opposite saying it will “benefit the industry and promote competition.”
- An administrative trial will take place on May 10.
- Analysts believe the FTC stepping in means the deal won’t likely reach completion.
- Gartner semiconductor analyst Alan Priestley told CNBC when asked to comment on the matter.
- Nvidia initially announced the Arm merger back in September 2020.
- At the time, it was valued at $40 billion.
- Originally, the two companies were expecting the deal to close in March 2022.
- However, that’s not likely to happen considering the May 10 trial date.
- It’s not just the U.S. that’s getting in the way of the merger.
- The U.K. also announced a full investigation into the deal last month.
- That probe is taking place over a 24-week period.
- Prior to that, the European Commission (EC) also opened an investigation into the Nvidia/Arm merger in October.
- The EC said it believes the merger could lead to “restricted or degraded access to Arm’s IP.”
- All-in-all, it looks like Nvidia is fighting an uphill battle if it wants the Arm merger to go through.
NVDA stock is down 2.4% as of Friday morning.
Investors seeking more stock market news today will want to keep reading!
InvestorPlace has all the news traders need to know about. That includes this morning’s biggest pre-market stock movers. what’s happening with airline stocks, as well as some Chinese stocks being delisted. You can get up to speed on those matters at the links below!
More Friday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
- Airline Stocks: Why DAL, LUV, AAL, JBLU and UAL Are Getting Some Lift Today
- U.S. Delisting Chinese Stocks? Why Some China Companies Could Get Kicked Off American Exchanges.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.