Monday, September 4th 2023

Arm Prepares for IPO: Apple, NVIDIA, Intel, and Samsung are Strategic Partners

Arm's impending IPO, valued between $60 billion and $70 billion, has reportedly garnered substantial backing from industry giants such as Apple, NVIDIA, Intel, and Samsung, as per sources cited in a Bloomberg report. This much-anticipated public offering serves as a litmus test for investor interest in new chip-related stocks and could reshape the tech industry landscape. While the information remains unofficial, it underscores the significant support Arm has received from major licensees, including Apple, AMD, Cadence, Intel, Google, NVIDIA, Samsung, and Synopsys, with each potentially contributing between $25 million and $100 million, a testament to their confidence in Arm's future prospects. Originally, SoftBank aimed to raise $8 billion to $10 billion through the IPO, but a strategic shift to retain a larger Arm stake revised the target to $5 billion to $7 billion.

This IPO's success holds paramount importance for SoftBank and its CEO, Masayoshi Son, particularly following the Vision Fund's substantial $30 billion loss in the previous fiscal year. Masayoshi Son is reportedly committed to maintaining significant control over Arm, planning to release no more than 10% of the company's shares during this initial phase, aligning with SoftBank's recent acquisition of the Vision Fund's Arm stake and reinforcing their belief in Arm's long-term potential. Arm has enlisted renowned global financial institutions such as Barclays, Goldman Sachs Group, JPMorgan Chase & Co., and Mizuho Financial Group to prepare for the IPO, highlighting the widespread interest in the offering and the anticipated benefits for these financial institutions.
Source: Bloomberg
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4 Comments on Arm Prepares for IPO: Apple, NVIDIA, Intel, and Samsung are Strategic Partners

#1
TechLurker
Kind of interesting for SoftBank to turn around and finally realize how valuable the ARM IP is.
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#2
trsttte
TechLurkerKind of interesting for SoftBank to turn around and finally realize how valuable the ARM IP is.
The value of the ARM IP is complicated. It's valuable only until the point where you don't incentivize everyone to move to RISC V or some other alternative, and to be able to make a boatload of money they're going to pass that threshold really easily (i.e. the proposed royaltee per device sold instead of only licensing to chip makers)
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#3
Wirko
The title is a bit misleading, those four are just some of the investors, quite possibly the largest four, but they don't have an exclusive "strategic partner" status. Given that this is TPU, mentioning at least AMD as a member of the bunch would be in order.
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#4
ViperXZ
Thank God Nvidia couldn't aquire ARM.
Posted on Reply
Dec 18th, 2024 04:02 EST change timezone

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