Japan’s SoftBank buys the remaining 25% stake of British chipmaker Arm

SoftBank Group Corp has acquired the remaining 25% stake in Arm Ltd, a chip designer, from its Vision Fund unit, in a deal that values Arm at $64 billion. The details of the transaction are expected to be revealed when Arm files for its stock market launch. This acquisition by SoftBank is likely to impact Arm’s initial public offering (IPO) plans, leading SoftBank to sell fewer Arm shares during the IPO and retaining a stake of around 90% in the company. The capital raised by Arm from the IPO is also expected to be lower than initially projected, ranging between $8 billion to $10 billion.

SoftBank is currently in discussions to list Arm at a valuation of $60 billion to $70 billion in the IPO, which is anticipated to take place in September. This move comes after SoftBank took Arm private for $32 billion in 2016 and subsequently sold a 25% stake to Vision Fund 1 for $8 billion in 2017.

By acquiring the Vision Fund’s stake, SoftBank eliminates a potential overhang on Arm’s stock post-IPO. The Vision Fund had initially planned to cash out its stake in the market gradually after the IPO, while SoftBank aims to remain a long-term strategic investor in Arm.

This deal is also seen as a significant success for Vision Fund 1’s major investors, including Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala. These investors faced losses due to SoftBank’s troubled bets on startups like WeWork and Didi Global.

Arm’s decision to go public comes as the U.S. IPO market starts to show signs of recovery, following a period of reduced activity. Other companies, such as Instacart and Klaviyo, are also expected to go public in New York in September.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Netherlands’ Eneco announces plan to build green hydrogen facility at Rotterdam Port

Eneco, a prominent Dutch energy company, has unveiled ambitious plans to construct a hydrogen plant in the Rotterdam port area, designed to be powered exclusively by renewable energy. This strategic move involves filing a planning application for the creation of an electrolyzer, a…

EU to investigate weaponization of critical technologies

The European Commission is embarking on a strategic assessment of the potential risks associated with four critical technologies—semiconductors, artificial intelligence, quantum technologies, and biotechnologies. The aim is to evaluate the possibility of these technologies being weaponized by nations that do not align with the values and interests of the EU.

“High-quality development” takes center stage in Xi’s economic paradigm shift

“High-quality development” is a key phrase in Chinese President Xi Jinping’s speeches and economic policies, indicating a shift from emphasizing the speed of economic growth to focusing on its quality. Xi first used this term during a party congress in 2017, highlighting the need for more efficient…

Stay informed

error: Content is protected !!