2023-08-18 19:14:53
Arm
Almost all smartphone chips are based on Arm’s designs.
(Photo: Reuters)
New York According to insiders, the Japanese technology investor Softbank has completely taken over the chip designer arm before the planned mega IPO. Softbank has bought its Vision Fund 1 (VF 1) investment fund’s 25 percent stake, people familiar with the matter told Reuters. Arm was valued at $64 billion.
The IPO, expected in September, could be one of the biggest of the year. Almost all smartphone chips are based on Arm’s designs.
Details of the acquisition are expected to be announced on Monday when Arm releases documents for its IPO, the insiders said. With the placement, Softbank will probably sell fewer shares than originally planned and will hold up to 90 percent in the chip designer in the future.
The proceeds from the IPO are likely to be lower than the last planned eight to ten billion dollars. A valuation of the chip designer at 60 to 70 billion dollars was under discussion for the IPO.
Softbank bought Arm for $32 billion in 2016. The following year, the Japanese technology investor passed on a quarter of the shares to VF 1 for eight billion dollars.
The takeover of VF-1’s shares at a valuation of $64 billion is also a consolation for the fund’s biggest investors – sovereign wealth funds Public Investment Fund (PIF) of Saudi Arabia and Mubadala of Abu Dhabi. Many bets from Softbank and its investment fund VF 1 had failed, for example in the office rental company WeWork or the Uber rival Didi. WeWork recently warned of a possible bankruptcy.
More: Softbank reports next billion loss
#Softbank #takes #full #control #IPO #Arm