Softbank is apparently considering possible options for its subsidiary ARM. Around four years after taking over the UK chipmaker for more than £ 23 billion, the company is now set to be sold off or floated on the stock exchange, the Wall Street Journal reports. Softbank plans to top up its cash reserves to reduce its debt by a total of $ 41 billion.
The investment bank Goldman Sachs is accompanying the sale. The planning is still at an early stage, the WSJ continues. In addition, there are no attractive purchase offers so far. Therefore, it is not excluded that Softbank will not sell or go public.
is considered an important developer of processors for mobile devices, embedded devices and the Internet of Things. Chips based on the ARM architecture, for example, power almost all smartphones worldwide. However, ARM does not manufacture processors – it only develops the chip designs, which are then developed by companies such as Qualcomm and be licensed.
also announced in June its notebooks and desktop computers from -Cchanges to processors developed in-house. These in turn are based on the ARM architecture.
In 2016, Softbank described the acquisition of ARM as an important strategic investment. The Japanese company was less fortunate with other acquisitions. Among other things, the investment in WeWork caused Softbank massive losses. At the instigation of, among other things, softbank investor Elliott Management, the company announced in March that it would provide $ 41 billion in debt relief and share buybacks.
Softbank could achieve this goal by selling ARM, among other things. In addition, Softbank announced in June that it would divest 198 million shares in T-Mobile USA. Their market value is around $ 21 billion. WeWork also announced that it would probably start to hit the black in late 2021.