back to article Apple, Samsung, and Intel to invest in Arm IPO, and emerge with some control: report

UK-based chip designer Arm will be floated in September, and its biggest licensees will be among those bidding for big shareholdings on day one. So says Japan's Nikkei, which on Wednesday reported an IPO on the US NASDAQ index – an outcome that will not please the UK government, had lobbied for any float to be on a British …

  1. Abominator

    Theresa May....."still open for business", which meant, "everything is for sale".

    1. Vometia has insomnia. Again. Silver badge

      Yep. IIRC it took less than a week from her becoming PM and promising to protect the UK's most important assets from multinational predation to fall back to Osbornesque "Bwitain is open for business!" tomfoolery.

    2. Charlie Clark Silver badge

      Which was very Thatcherite…

    3. pimppetgaeghsr

      Of course, keep the wages low so people can only invest in housing/mortages that they have to then sell to retire and let foreign buyers purchase your mates businesses for billions to make up the shortfall.

  2. pimppetgaeghsr

    I would love to be a fly on the wall of those board meetings. Samsung trying to push ARM for more development and higher performance mobile cores, Apple pushing for cutting costs to keep their SOC performance moat above and beyond Samsung/Qualcomm.

    Sounds like the employees MAY escape in March 2024 with paper that is worth something, whether it is trading at 60billion Market Cap is another thing but it looks like ARMs woes are far from over. What a shame.

    1. Anonymous Coward
      Anonymous Coward

      Maybe the woes but not profit. Much more costly licensing and taking on billion trillion dollar companies is all the moves of a new predatory entity, of a Japanese BANK! I suspect early investors can't lose.

  3. J. R. Hartley

    Tory Britain

    Still can't believe the government let ARM get sold off.

    Oh, that's right, the tories have been in charge for 13 miserable years. Fucking scumbags.

    1. Charlie Clark Silver badge

      Re: Tory Britain

      Not sure it would have been much different under Labour to be honest. The lesson they "learned" from the disastrous industrial policy of the 1970s was that government should stay out of industry. There's a lot to be said for this but regulators must then be given sufficient tools.

      1. pimppetgaeghsr

        Re: Tory Britain

        The difference MIGHT have been Corbyn would have invested public money in it to keep it in the UK (and even that is a slim chance), and the Murdoch empire would have every reader lapping up marxist Corbyn for doing so. You would also have all the Tory voting middle-managers in ARM Cambridge cursing Labour for not letting Softbank pay them a 50% premium on their shares.

    2. StrangerHereMyself Silver badge

      Re: Tory Britain

      ARM's fate was sealed long ago, in the late 90's to be precise, when it was taken public. From that time on greedy shareholder were waiting to sell their stock to the highest bidder, no matter what the consequences.

      It's just good fortune that RISC-V came along or we'd all be screwed. ARM would forever be locked in war for control by different licensees trying to get a leg up on the competition.

      There's no way ARM is worth $60 billion, that's just a paper valuation. No one in their right minds would ever pay that kind of money now that RISC-V is making inroads. My guess the company is worth maybe $5 billion at the most. When this becomes reality Softbank will be left holding the bag.

      1. pimppetgaeghsr

        Re: Tory Britain

        Even I am skeptical on their IPO but this is ridiculous, their Revenue is ~3 billion with something like 30-40% margins.

        It will fetch whatever this conglomerate of customers are willing to pay to get control. As for what it is trading at after the banks offload their shares and Softbank need to stay afloat is another story by the time the employees are able to sell their stock.

        Sadly people don't understand this industry and think ARM will be a growth stock, it is a value stock trying to be turned into a growth stock and the customers are getting pissed off.

  4. Roland6 Silver badge

    “Apple, Nvidia, and Samsung have all bet big on Arm… “

    Given this article: Amazon has more than half of all Arm server CPUs in the world

    There is a notable omission from the list.

    Plus perhaps Huawei might want to invest…

    1. DS999 Silver badge

      Re: “Apple, Nvidia, and Samsung have all bet big on Arm… “

      There's also Qualcomm.

      If each of those five bought 10% they'd have enough voting power collectively to veto anything particularly stupid ARM's management tried to do. And they all have enough money that they don't have to care about long term return - it would be more of a protective move than an investment expecting direct ROI.

      1. StrangerHereMyself Silver badge

        Re: “Apple, Nvidia, and Samsung have all bet big on Arm… “

        That won't happen because Softbank is only selling a minority stake. They're not THAT stupid.

        1. DS999 Silver badge

          Re: “Apple, Nvidia, and Samsung have all bet big on Arm… “

          Nowhere does it say that, it says it is unknown what Softbank may end up holding onto.

          If they can't collectively buy 50% then at least a couple of them will want to buy enough to have a board seat so they can be aware of dumb stuff they're planning to do in advance.

        2. Roland6 Silver badge

          Re: “Apple, Nvidia, and Samsung have all bet big on Arm… “

          >” They're not THAT stupid”

          From a previous press release, I would not be so sure…

          A stock market listed company is a legal entity in its own right and has to product financial reports of its activities, yet SoftBank have stated “ SBG does not expect that any such offering would have a material effect on its consolidated results or financial position.” which would seem to imply they believe they can simply include the financials of ARM in the SBG financial statements and that ALL trading surpluses accrue to SBG and not to any other shareholder in ARM.

          I also expect SBG, because of their poor financial status, will be wanting to appropriate ALL monies received from the listing ie. Leave ARM with minimal reserves.

          So having some major ARM customers involved could be a good thing. Personally, if any the named companies wash their hands and walk away, I would be strongly tempted to give the ARM IPO and listed stock a miss…

      2. 3arn0wl

        Re: “Apple, Nvidia, and Samsung have all bet big on Arm… “

        I'm not sure Qualcomm (or Broadcom or NXP) will be interested - https://www.theregister.com/2023/08/04/chip_companies_risc_v/

        In fact, I'm quite surprised to see Samsung there.

  5. StrangerHereMyself Silver badge

    Nothing to worry about

    We're gonna jack up prices tenfold to ignite our stock price. Afterwards, everyone will flock to RISC-V and the bright burning candle will fade and wither.

  6. John Brown (no body) Silver badge

    scrip?

    Is this a synonym for shares, or does it have some special meaning here?

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