From the Beginning, Arm IPO Was Plan A
By Sally Ward-Foxton, EETimes (February 15, 2022)
After SoftBank’s deal to sell Arm to Nvidia collapsed last week, the Japanese conglomerate was seemingly forced to resort to Plan B: relisting Arm as a public company. According to SoftBank CEO Masayoshi Son, however, an IPO was its Plan A all along.
Having previously argued to regulators that an IPO would be a disaster, Arm and SoftBank are now faced with convincing investors that an IPO is, in fact, a good idea. The companies are floating arguments that a public Arm will thrive in new markets that include data centers and automotive.
In documents submitted to U.K. regulators in December 2021, you’ll recall, Arm detailed the potential pitfalls of an IPO. Its arguments against an IPO revolved around a publicly-traded Arm lacking the financial resources to take on powerful incumbents in the data center market. Moreover, impatient capital markets would demand a focus on short-term revenue growth and profitability. That would necessitate slashing costs to maximize value, inhibiting Arm’s ability to invest, expand and innovate.
To read the full article, click here
Related Semiconductor IP
- UCIe Chiplet PHY & Controller
- MIPI D-PHY1.2 CSI/DSI TX and RX
- Low-Power ISP
- eMMC/SD/SDIO Combo IP
- DP/eDP
Related News
- Arm IPO Likely to Lag Early Expectations, Observers Say
- Raspberry Pi Receives Strategic Investment from Arm, Further Extending Long-Term Partnership
- Arm PCs Get a New Lease on Life
- Taalas emerges from stealth with $50 million in funding and a groundbreaking silicon AI technology
Latest News
- Global Semiconductor Sales Increase 17.1% Year-to-Year in February
- Altera Starts Production Shipments of Industry’s Highest Memory Bandwidth FPGA
- Blumind reimagines AI processing with breakthrough analog chip
- 32-bit RISC-V processor based on two-dimensional semiconductors
- pSemi Files Patent Infringement Lawsuit Against Cirrus Logic and Lion Semiconductor