Sources reveal that if these negotiations are successful, SoftBank will provide immediate financial gains to VF1 investors, including Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala. These investors experienced losses due to SoftBank’s unsuccessful bets on startups such as WeWork and Didi Global. Alternatively, VF1 may choose to gradually sell its Arm shares on the stock market after the initial public offering (IPO), a process that could take up to two years given the size of the stake.
Arm, the chip designer, plans to go public in September with a valuation of $60-70 billion. Bloomberg reports that potential anchor investors in Arm’s IPO include Amazon, Intel, and Nvidia.
SoftBank initially acquired Arm for $32 billion in 2016 and later sold a 25% stake to VF1 for $8 billion in 2017. In preparation for Arm’s IPO, SoftBank has been in discussions with various technology companies, including Amazon, Apple, and Intel, to onboard them as cornerstone investors.
Following the failed $40 billion acquisition of Arm by Nvidia due to antitrust opposition, SoftBank is now considering an IPO for Arm. The company is contemplating a listing worth up to $10 billion.
Earlier this year, Arm declined the British government’s proposal to list its shares in London and opted instead for a flotation on a U.S. exchange. Unlike other chip manufacturers, Arm primarily focuses on licensing designs rather than manufacturing processing systems.
While Arm has been generating significant royalty earnings from its chip designs, recent decline in smartphone demand has affected its profitability.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
