There are reports that tech giants Apple and Samsung, along with other industry players like Nvidia and Intel, are planning to invest in the chip designer Arm at its upcoming initial public offering (IPO). This move is seen as a significant development in the tech industry and could provide a financial boost for SoftBank, the company that owns Arm.
According to the Nikkei newspaper, Apple and Samsung Electronics have agreed to invest in Arm at its IPO. This news comes after it was previously reported that Arm was in discussions with various companies, including Apple, Samsung, and Intel, to secure anchor investors for its offering. Moreover, there were talks about Nvidia potentially becoming an anchor investor for Arm’s IPO in the United States.
Potential Stake and Listing Details
The report suggests that Apple, Samsung, Nvidia, and Intel have all expressed their intention to invest in Arm once it goes public. Arm is expected to apply for listing with the US Securities and Exchange Commission later this month. The company plans to sell stakes to these chipmakers, with each stake representing a few percent of ownership. However, the exact stake amounts and details of the IPO have not been disclosed.
Impact on SoftBank
SoftBank, the Japanese conglomerate that owns Arm, has been pursuing an IPO for the chip designer since its deal with Nvidia fell through last year. This IPO is seen as a potential windfall for SoftBank and its CEO, Masayoshi Son. The listing is expected to raise between $8 billion and $10 billion, providing much-needed funds for SoftBank’s future endeavors.
SoftBank recently announced a surprise loss but highlighted the positive performance of its Vision Fund unit, which returned to profitability after six consecutive quarters of losses. This shift in financial fortune may have emboldened SoftBank to explore new investment opportunities. With the potential success of Arm’s IPO, SoftBank could potentially reinvest some of the proceeds into other promising technologies and sectors.
Closing Thoughts
The reported investment from major players like Apple, Samsung, Nvidia, and Intel in Arm’s IPO signifies the significant attention and faith these companies have in the chip designer. The IPO could serve as a financial catalyst for both Arm and SoftBank, enabling them to pursue future growth and innovation in the technology industry. As the IPO preparations progress smoothly, the tech world eagerly awaits the official listing of Arm and the potential market impact it may have.
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