Report: Softbank selling a 25% stake in ARM Holdings

A scant six months ago, SoftBank acquired ARM Holdings for a whopping $32 billion. Now, the Japanese conglomerate is reportedly in "final-stage" talks to sell 25% of ARM Holdings to an investment fund, according to the New York Times.

The sale should go for $8 billion, matching the original purchase price percentage-wise. The investment fund that's buying the slice of ARM is called Vision Fund and was created between Softbank founder Masayoshi Son, the Saudi Arabia Public Investment Fund, and other smaller investors including Oracle's Lawrence Ellison and Apple.

Son's goal appears to be one of diversification, since the Vision Fund's goal is to "invest in high-growth tech start-ups" and on "larger tech investments in the public and private markets." The Times notes that Son met with President Trump shortly before his inauguration to discuss using the fund to invest in American tech companies, and that British politicians view the sale of this slice of ARM in a positive light.

What this all means for ARM itself is unclear. Microsoft's recent investment in ARM's CPU tech is a shot in the arm for the company, but the purchase will place more heads in charge of ARM's direction. ARM's chip designs are already inside most smartphones and tablets, and Microsoft is now bringing them into datacenters en masse, so the company's future is likely a bright one.

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    • Shobai
    • 3 years ago

    [url=https://techreport.com/forums/viewtopic.php?f=1&t=119320<]I feel like this was posted previously[/url<]... =P

      • jv008
      • 3 years ago

      Just a copy from that thread:

      “Now that would be funny as hell… AMD goes fabless, and ARM buys their own fab (or rather, a fab goes and buys ARM). They could do a lot of interesting vertical integration and efficiency tricks with their designs if they wanted to go that route in the future.”

    • Wall Street
    • 3 years ago

    I would expect that the drive here is more than just looking at this as an investment. Softbank appears to be looking to get cash from the sale to show that it doesn’t have a debt problem. Also, Softbank is sponsoring the Vision Fund and would like to show it as a success and is using ARM as an anchor investment to attract investors. Meanwhile, Vision Fund investors / potential invetors include Qualcomm, Mubadala (a.k.a. AMD and GlobalFoundries) and Apple, people who want a seat at the table with ARM to ensure that its cores remains widely open, affordable standards for use in many devices.

    • blastdoor
    • 3 years ago

    Masayoshi Son sounds like a bit of a nut:

    [url<]http://blogs.barrons.com/techtraderdaily/2017/02/27/softbanks-son-why-do-i-spend-so-much-money-the-singularity-is-real/[/url<] Apparently he thinks machine intelligence will overtake human intelligence in 2018 because he thinks 1 transistor = 1 neuron. He also thinks that smart sneakers will have a higher IQ than humans within a year. Hopefully he's just being hyperbolic and understands that what he's saying is nonsense...

    • albundy
    • 3 years ago

    thats a lot of juicy stake to hold in one’s ARMs!

    • jv008
    • 3 years ago

    Probably a good investment.

    • derFunkenstein
    • 3 years ago

    The NYT article says Mubadala Development Company is looking to get in on that sweet ARM action. Other notable Mubadala Development Company property: GlobalFoundries. Seems unlikely that ARM would want to get into the business of selling its own SoCs, but I’m going to post a lot of question marks and exclamation points so that the conspiracy theorist in all of us can wonder.

    ??????!!!!?!!?!??!!!!?!?!!?!??!???!!!?!?!?1/1/1//11//1/1!?!!?!?!?!?!?

      • chuckula
      • 3 years ago

      One-Thousand-One-Hundred-Eleven!

        • derFunkenstein
        • 3 years ago

        We all know that your comment, when turned into binary and then converted to plain English means “RYZEN-BASED ARM SOCS CONFIRMED!”

          • chuckula
          • 3 years ago

          It’s like when I sing drinking songs with Bender.

          1000 bottles of beer on the wall.
          1000 bottles of beer!

          Take one down.
          Pass it around.

          0111 bottles of beer on the wall.

          • jv008
          • 3 years ago

          If only Intel would be that smart.

            • jv008
            • 3 years ago

            Well x86 lost to ARM in mobile, so they might do themselfes a favour also producing ARM SoCs with their superior (supposedly) fab tech IMHO to be competitive in mobile (if they are still after that)

            • jv008
            • 3 years ago

            I like those Intel fans, can you try for below -3 ?

            • chuckula
            • 3 years ago

            LMFTFY:

            Well ARM lost to x86 in PCs, notebooks, Chromebooks, game consoles, servers [*especially* microservers where the Xeon-D is literally being sold by the truckload], any worthwhile embedded storage server product, so they might do themselfes a favour also producing x86 SoCs with their inferior (undoubtedly) fab tech IMHO to be competitive in anything that isn’t a cheap smartphone (if they are still after that)

            • jv008
            • 3 years ago

            Ever heard of the latest Nintendo console based on an ARM Soc ?
            ARM market share in servers is still very supported by Microsoft and Qualcomn.
            I also would not call Apple smartphones cheap.

            And BTW I think ARM has a great future in PCs, given full Windows 10 will soon run on them.

            • chuckula
            • 3 years ago

            [quote<]Ever heard of the latest Nintendo console based on an ARM Soc ?[/quote<] Uh yeah... I did say that ARM clearly lost in game consoles. The Nintendo switch being some pretty strong evidence to prove my point.

            • jv008
            • 3 years ago

            You could just as well say x86 lost in console some years back (ie oringinal xbox), before all next major consoles were based on IBM powerpc.
            What currently is can possibly change in the future (as the past has proven)

            • jv008
            • 3 years ago

            RIP

      • Neutronbeam
      • 3 years ago

      Hmmmm….seems to me that you’re twisting an ARM.

        • derFunkenstein
        • 3 years ago

        I’m already trying not to break my ARM by patting myself on the back.

          • Neutronbeam
          • 3 years ago

          When you should studying and doing your homework. Those tests don’t take themselves, Benjamin!

    • chuckula
    • 3 years ago

    It’s kind of like when Vader took a 25% share in Luke’s arm. (oh wait, I mean “ARM”)

      • ozzuneoj
      • 3 years ago

      That’s not true, that’s impossible.

      • Anovoca
      • 3 years ago

      Yikes, I thought that share abruptly plummeted.

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