Wednesday, March 30th 2022
SK Hynix Shows Interest in Buying Arm via Consortium
Rather surprisingly, SK Hynix has said that it's interested in being part of a consortium to purchase Arm, during its annual shareholders meeting. Although several companies have voiced their interest in Arm, such as Qualcomm and even Intel, SK Hynix hasn't even been on the radar until now. However, the interesting part here is the bit about a consortium and Park Jung-ho, vice chairman and CEO of SK Hynix is quoted saying "I don't believe Arm is a company that could be bought by one company," by the Yonhap News Agency.
Although SK Hynix has only recently started working on the idea of purchasing Arm, most likely due to NVIDIA's deal to purchase Arm from SoftBank falling through, it looks like SK Hynix have a very different plan to that of NVIDIA. Park continued "It doesn't have to be buying a majority of its shares to be able to control the company," suggesting that even if SoftBank was to list Arm on the stock market as a standalone company, SK Hynix could try to take control of a majority of its shares. However, the mention of the consortium is something other industry players have proposed and it seems like the most sensible way to move forward, without causing negative effects for the Arm licensees in the long term.
Source:
Yonhap News Agency
Although SK Hynix has only recently started working on the idea of purchasing Arm, most likely due to NVIDIA's deal to purchase Arm from SoftBank falling through, it looks like SK Hynix have a very different plan to that of NVIDIA. Park continued "It doesn't have to be buying a majority of its shares to be able to control the company," suggesting that even if SoftBank was to list Arm on the stock market as a standalone company, SK Hynix could try to take control of a majority of its shares. However, the mention of the consortium is something other industry players have proposed and it seems like the most sensible way to move forward, without causing negative effects for the Arm licensees in the long term.
13 Comments on SK Hynix Shows Interest in Buying Arm via Consortium
The fact mistakes were made doesn't mean they will be repeated.
Take note of what's happening around Ukraine. Britain is one of the biggest arms suppliers. We learned recently they've been supplying for months already even long before Russia started moving their invasion force to the border. 'How can governments...' They just do.
And that's what you read about.
You're supplying Swedish designed weapons though...
But if one thing must be clear by now, it is that when shit hits the fan, nobody plays by the rules anymore, and as problems escalate, the definition of shit changes by the minute. I'm looking at way too many examples lately that just show everytime that systems are not quite as transparent as we might think, and I've also been part of too many situations of a similar nature.
See I don't look at ARM and see a Softbank owned company and stock markets, I look at ARM and see that the majority of its subsidiaries are EU-based, and that the company is founded in Britain, has its HQ over there, which means, its history and its ties and certainly a big part of its loyalty.
There is the world you read about and then there's the real one.
Also 'You're'- I'm not from the UK, I'm from the other side of the Canal.
If you can read between the lines (and some lines even say it rather explicitly):
www.ig.com/en/news-and-trade-ideas/arm-ipo--everything-you-need-to-know-220213
Take note of the sentiment they speak of, the problems with Chinese / Asian parts of the firm, the desire for stability of the company and its 'purpose', and the ties to the UK of several board members.
The take away is, Softbank wants to not come out losing, and somehow the UK is going to have its foot in the door. Those are the primary stakeholders here.
There are no laws AFAIK from buying a controlling amount of shares, nor does that amount of shares guarantee a seat on the board. Yep. We can all go back and forth on this, but it would be better to sit back with the popcorn and enjoy the show. :D