Nvidia in pole position to buy Arm

It is said that Softbank will want to retain a stake in the company.

Speculation over why Nvidia wants Arm is widespread.

One explanation is that with Nvidia’s soaring share price – now at $260 billion – a $20-30 billion all-share deal looks easy for Nvidia to absorb.

Another is that buying Arm gives Nvidia the opportunity to expand into the mobile industry.

Arm has revenues of $2 billion and is thought to be unprofitable.

Arm’s China jv, in which Arm’s share is 49%, says it is supplying half of Arm’s current revenues while the jv is in turmoil after its CEO was sacked and refused to leave.

Arm China has asked the Chinese government to step in to resolve the dispute which raises doubts over the extent of management control which Arm UK has over Arm China.