Report Suggests Intel Considering Investment in Arm's Upcoming IPO

[T0@st]

Reuters has been informed this week by a trusted insider source that the higher-ups at Intel Corporation are holding talks with Japan's SoftBank about becoming a possible anchor investor in the latter's initial public offering (IPO) of Arm. The British semiconductor and software design company was wholly acquired by the Japanese multinational investment holding firm in 2016. This was followed by a failed takeover bid by NVIDIA—six years later. Arm is aiming to sell its shares via Nasdaq in Q3 or Q4 2023, with a goal of raising around $8 - $10 billion. It also formulated plans to adjust pricing models earlier this year, with news reports labelling the strategic act as an attempt to rake in more royalties.

Intel and Arm have already formed a relationship in recent times—thanks to the development of the former's low-power compute system-on-chips (SoCs). These are set to be built on Intel Foundry's 18A process. The two companies have signed a multi-generation agreement to collaborate on the design of a series of mobile chipsets as an opening product range—diversified options will follow in the future. Arm is rumored (according to Reuters) to be working on its own proprietary chip, but the deal with Intel allows it to use its partner's "open system foundry model."



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[kondamin]

That should be illegal

 

[TechLurker]

Would be humorous if AMD would also buy some anchor stock in ARM too.

 

[Denver]

Alright, Arm's already got one foot in the grave... I think intel misses monopoly practices.

 

[HisDivineOrder]

If you're Intel and you basically own the last great CPU architecture, then owning the one that might take over seems like a great investment because you win whether yours wins along with the other guys or they win outright. No matter what, you make lots of money and that's all they want. ARM is past the point of being stopped, so best to just let them carry you to greater profitability. Plus, having enough stock prevents any future Nvidia's from thinking they can buy up ARM and preventing a competitor from appearing overnight.

Imagine Nvidia right now with AI if they had bought ARM. Imagine the royalties they'd be charging. Think like what they do to gamers times a bajillion.

 

[Wirko]

"Arm is talking to at least ten companies, including Intel Corp, Alphabet Inc, Apple Inc., Microsoft Corp., TSMC, and Samsung Electronics Co Ltd., about their potential participation in the IPO, one of the sources said." (Reuters)

A sixopoly in the world dominated by monopolies, duopolies and triopolies doesn't seem half bad. Moreover, it's quite likely that AMD and NVDA are bringing their dollars to the pre-IPO party, too.

 

[trsttte]

A sixopoly

That's stretching the word monopoly by a lot It will become a de facto kind of interest group/forum akin to all the others like pci sig, usb-if, etc etc etc, not bad at all given the alternatives.

ARM is looking into expanding into manufacturing their ows chips to compete with qualcomm, mediatek and everyone else using their IP in one form or another, having several large companies with a vested interest on the ISA own the company can help prevent a situation like the x86 duopoly except this could become a pure monopoly if ARM decided to stop licensing their IP in the future.

 

[bonehead123]

This don't matta, since I've already bought up ALL of Arm's shares, at remarkably cheap, pre-IPO prices too, so now Team blue & everyone else will have to negotiate with ME and ME alone if they wanna get in on this deal .......

/s

 

[kondamin]

"Arm is talking to at least ten companies, including Intel Corp, Alphabet Inc, Apple Inc., Microsoft Corp., TSMC, and Samsung Electronics Co Ltd., about their potential participation in the IPO, one of the sources said." (Reuters)

A sixopoly in the world dominated by monopolies, duopolies and triopolies doesn't seem half bad. Moreover, it's quite likely that AMD and NVDA are bringing their dollars to the pre-IPO party, too.

look behind the facade, there are a couple of huge investment funds that own the majority of shares in those companies and have significant influence on what companies do.
they are monopolies, it’s just hidden behind a facade of company names.

 

[R0H1T]

Would be humorous if AMD would also buy some anchor stock in ARM too.

They should buy 20% of Intel instead, given their stock price right now could be relatively cheap

That should be illegal

If you go strictly by things that "should be illegal" in today's world I bet half the businessmen & 90% of politicians/bureaucrats across the globe could be in jail.

 

[Wirko]

look behind the facade, there are a couple of huge investment funds that own the majority of shares in those companies and have significant influence on what companies do.
they are monopolies, it’s just hidden behind a facade of company names.

There are more than "a couple" of those funds so any one of them, or even a few of them combined, are far from the majority. Here's the list of investment and mutual funds that own Intel. But here's the scary part: the names and percentages in the list are nearly identical if you look at AMD or NVDA for example. (Those same companies are probably the ones who always seem to have the money to lend to all deeply indebted countries, which is basically all countries.)

 

[trsttte]

There are more than "a couple" of those funds so any one of them, or even a few of them combined, are far from the majority. Here's the list of investment and mutual funds that own Intel. But here's the scary part: the names and percentages in the list are nearly identical if you look at AMD or NVDA for example. (Those same companies are probably the ones who always seem to have the money to lend to all deeply indebted countries, which is basically all countries.)

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That list is misleading, though private funds own a lot of shares, in the case of Vanguard and BlackRock the vast majority if not all those shares are part of several ETFs that are then sold to whoever (other funds or average joes like you or me) - could also be the case with SSgA and Geode but I just don't know them.

Vanguard in particular is also a special case since the company is not owned by a couple dozen shareholders, vanguard is owned by their customers - that his whoever buys their ETFs and other mutual funds, which again can be other funds or average joes like you or me (I know I own my tiny share for example)

The percentage being similar for Intel, Amd or Nvidia makes sense as the companies also have a similar weight on various indexes that are often the base for the ETFs BlackRock and Vanguard specialize in (sp500, ndx100, soxx, world stock market, etc.)