SoftBank is reportedly assessing spin-off options for its semiconductor firm, Arm Holdings. The Wall Street Journal reports from its sources that those options include having an initial public offering or a sale. The Japanese tech conglomerate picked up Arm back in 2016 for $32 billion and currently shares some ownership with investors in the SoftBank Vision Fund.
The moves are being considered as SoftBank fends off challenges from activist investment house Elliott Management over major losses for its Vision Fund, including WeWork’s attempted IPO. SoftBank is supposedly targeting $41 billion in immediate fundraising through share buybacks and divestitures. Depending on Arm’s current prospectus, a sale could be more likely to happen than an IPO.
I’m linking to the AndroidPolice item since the original article is stuck behind a paywall.
Whoever intends to acquire ARM better have a very good story to tell antitrust regulators, because I doubt Intel, Apple, Google, or any of the other major technology companies will be allowed to acquire it. I wonder who else could be a potential buyer – maybe another investment fund?