2023-08-09 18:15:00
NVIDIA had no luck buying Arm a few years ago because the entire tech industry turned against it. The ARM architecture is too important to fall into the hands of a company that could do well to trip up the rest. But Japan’s SoftBank needs money, and after trying to find a buyer, it will ultimately opt to take Arm public. That is why it is negotiating with various companies its initial position in that IPO.
Amazon, Apple, Intel, NVIDIA, and Samsung all want to be lead investors in this initial public offering (IPO) to begin with, so they would have to negotiate things like the percentage they want, the amount, or the duration of the investment. Arm’s idea is that they are investments in the medium or long term so that the company’s stock price is stable and everyone benefits from this move by SoftBank.
Apparently the Japanese company could raise up to 10 billion dollars with this IPO, with which Arm’s valuation as a company would go to about 60 or 70 billion dollars. Although there are alternatives to Arm, such as RISC-V, at the moment there are none that can overshadow it or really be a replacement. Hence, the company should have a high valuation in the coming years, and therefore investing in it would be a safe investment.
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