Softbank is about to swindle a lot of investors if they get their $60 - $70b valuation. They had a $40 billion valuation during covid era of free money. Now they want a $60b - $70b valuation when tech stocks have cratered?
Why did the regulators not think ARM too important to be held by a single company back in 2016? Sure tech vs financial, but it doesn't seem that purchase worked out too well either. But I guess I'm not an investor, so I probably wouldn't know anyway. The wording of that just struck me as curious...
I get the impression they are OK with single-company ownership of ARM, but it needs to stay a licensing business that doesn't do their own manufacturing, and puts companies utilize ARM designs on roughly equal footing. That would not have been the case if nVidia owned it.
It's the combined entity of ARM + Nvidia which was unacceptable. In large measure, because that would risk disadvantaging other users of ARM's IP who potentially compete with Nvidia in certain markets (and not only server - don't forget about their self-driving SoC and Nintendo Switch).
Curious to see who is a heavy investor early on. Many companies have have a strategic interest in ARM and ensuring things continue in the same general manner. While hostile take over going public is not likely, there several companies who would benefit by acquiring enough shares to get a seat on the board. Apple, nVidia, Samsung, and Broadcom are all companies that I can see acquiring some shares to a bit of control as many of their SoC designs depend on ARM IP. Intel would be a wild card here as they are a processor competitor but Intel also wants ARM designs to be available for their foundry services. In addition, Intel does leverage some ARM core designs due to the projects inherited from acquisitions.
It will be interesting to see how the leadership of the company changes after the IPO and how that trickles down.
Hopefully this IPO injects money/life into ARM R&D. Its been suffering a lot lately and this could be amazing for the company. Alternatively, if this just results in the fund owner making money, it will suck.
Can you please link your source? I'm rather curious about why they would announce that sort of intention to the general public since it may put the company in a negative light.
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Dante Verizon - Monday, August 21, 2023 - link
AI everywhere... Ughlemurbutton - Tuesday, August 22, 2023 - link
Softbank is about to swindle a lot of investors if they get their $60 - $70b valuation. They had a $40 billion valuation during covid era of free money. Now they want a $60b - $70b valuation when tech stocks have cratered?No, ARM is not an AI company.
ingwe - Tuesday, August 22, 2023 - link
Literally no mention of AI in this article.lemurbutton - Wednesday, August 23, 2023 - link
No one cares about this article. Meanwhile, Softbank is going on a PR crusade to make people think that ARM is an AI company.Dante Verizon - Tuesday, August 22, 2023 - link
Then there must be something wrong, because the word AI is mentioned dozens of times on the IPO form. :')lemurbutton - Wednesday, August 23, 2023 - link
If you read the risk section, it literally spells out that management thinks AI is a huge threat to ARM's importance. ARM is not an AI company.rpg1966 - Thursday, August 24, 2023 - link
What? No-one is forcing anyone to buy any ARM shares, so no-one is getting swindled. If idiots want to overpay for shares, that's their own business.Threska - Tuesday, August 22, 2023 - link
Posters are still human.mode_13h - Tuesday, August 22, 2023 - link
Oh, you'd be surprised. I've already seen several instances of spam bots using ChatGPT or similar.domboy - Tuesday, August 22, 2023 - link
Why did the regulators not think ARM too important to be held by a single company back in 2016? Sure tech vs financial, but it doesn't seem that purchase worked out too well either. But I guess I'm not an investor, so I probably wouldn't know anyway. The wording of that just struck me as curious...twtech - Tuesday, August 22, 2023 - link
I get the impression they are OK with single-company ownership of ARM, but it needs to stay a licensing business that doesn't do their own manufacturing, and puts companies utilize ARM designs on roughly equal footing. That would not have been the case if nVidia owned it.mode_13h - Tuesday, August 22, 2023 - link
+1It's the combined entity of ARM + Nvidia which was unacceptable. In large measure, because that would risk disadvantaging other users of ARM's IP who potentially compete with Nvidia in certain markets (and not only server - don't forget about their self-driving SoC and Nintendo Switch).
Kevin G - Tuesday, August 22, 2023 - link
Curious to see who is a heavy investor early on. Many companies have have a strategic interest in ARM and ensuring things continue in the same general manner. While hostile take over going public is not likely, there several companies who would benefit by acquiring enough shares to get a seat on the board. Apple, nVidia, Samsung, and Broadcom are all companies that I can see acquiring some shares to a bit of control as many of their SoC designs depend on ARM IP. Intel would be a wild card here as they are a processor competitor but Intel also wants ARM designs to be available for their foundry services. In addition, Intel does leverage some ARM core designs due to the projects inherited from acquisitions.It will be interesting to see how the leadership of the company changes after the IPO and how that trickles down.
webdoctors - Wednesday, August 23, 2023 - link
Hopefully this IPO injects money/life into ARM R&D. Its been suffering a lot lately and this could be amazing for the company. Alternatively, if this just results in the fund owner making money, it will suck.lemurbutton - Wednesday, August 23, 2023 - link
This will be a payout for Softbank and investors. The money won't go to hiring better engineers.PeachNCream - Wednesday, August 23, 2023 - link
Can you please link your source? I'm rather curious about why they would announce that sort of intention to the general public since it may put the company in a negative light.