SoftBank to acquire remaining 25% stake in Arm from Vision Fund 1
Summary
The report cites unnamed sources familiar with the matter as revealing that the discussions are being held as SoftBank, which currently owns 75% of Arm, is preparing to list the company on Nasdaq next month at a valuation of between $60bn and $70bn. Should a deal be agreed, VF1 investors including Saudi Arabias Public Investment Fund and Abu Dhabis Mubadala, would see an immediate return having previously suffered losses from SoftBanks bets on several startups including workspace provider WeWork and ride-sharing firm Didi Global. VF1 could also sell its Arm shares in the stock market over time following the initial public offering (IPO), but due to the size of the stake, that could typically take one or two years, according to the report. And the eventual investor return could also be lower if Arms shares fall post-IPO. VF1 returned to profitability in the latest quarter thanks to hype around AI boosting the value of some of its start-up imnvestments.