Thursday, March 9th 2017
SoftBank to Sell 25% Stake on ARM to Saudi Investment Group
After pulling off one of the highest-value acquisitions ever in the tech world through its purchase of ARM for $31 billion in September 2016, SoftBank is now looking to sell 25% of the company to a Saudi investment group. The $8 billion stake in ARM is being sold to Vision Fund, a $100 billion technology fund created by SoftBank founder Masayoshi Son. Six months later, SoftBank is in the final-stage talks towards conclusion of the sale.
This seems like an overly fast negotiation time towards the selling of such a large stake on ARM - especially considering the companies' increasing importance in the technology sector. ARM designs power more than 90% of the world's smartphones, and recent announcements of companies such as Microsoft in increasing ARM's presence in the server space point only to increased growth of the company. A sale in this state of affairs (and with such admittedly little information) seems a little... untimely.
Sources:
Techspot, New York Times
This seems like an overly fast negotiation time towards the selling of such a large stake on ARM - especially considering the companies' increasing importance in the technology sector. ARM designs power more than 90% of the world's smartphones, and recent announcements of companies such as Microsoft in increasing ARM's presence in the server space point only to increased growth of the company. A sale in this state of affairs (and with such admittedly little information) seems a little... untimely.
12 Comments on SoftBank to Sell 25% Stake on ARM to Saudi Investment Group
I wouldn't be surprised if there were some exchanges happening under the table though...Nope. That was the Emiratis' doing.
ARM's value will tank hard if the saudi's have their way on this!
A country with ZERO human rights and Religion Fascism among other things is going to be in control in one of the most prolific technologies. What gives?!
The Saudis internal social governance is irrelevant, this is a matter of economical and strategic planning. Ironically, two aspects that Saudis are proving to be failing at as well. Their corruption track record is enough an excuse to worry (which is why this deal smells fishy), their tendency to behead every neck that cranes the wrong way is not relevant.