ARM IPO: Samsung, Apple, Google Lead $50 Billion Funding Round

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05th Sep, 2023. 08:35 pm
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ARM, a chip designer, is going public.
The IPO is expected to value ARM at $50-55 billion.
Nvidia, Apple, Intel, AMD, and Samsung are among the partners interested in investing.

ARM, a chip designer, took the first step toward becoming a publicly traded company by filing for an IPO last month.

According to insiders who spoke with Reuters, several prominent tech firms have expressed strong interest in ARM’s IPO.

The upcoming initial public offering is expected to result in a valuation in the range of $50 billion to $55 billion.

Out of the total shares, 10% will be allocated to partners, while SoftBank, the parent company of ARM, will retain the remaining 90%.

Notably, Nvidia is among the partners showing significant interest. Nvidia had previously attempted to acquire ARM for $40 billion in a deal in 2020, but it was abandoned due to regulatory concerns.

Intel and AMD Also Onboard

ARM has garnered support from various entities with strong ties to ARM-based devices, including tech giants like Apple, Alphabet (the parent company of Google), and Samsung.

In addition, the list includes the two leading players in the x86 architecture, Intel and AMD. Notably, Cadence Design Systems and Synopsys are also part of this group, with the possibility of other potential partners being added to the mix.

Amazon and Qualcomm Backed Out

Apple and Nvidia are reportedly in agreement to acquire shares in the range of $25 million to $100 million each.

Interestingly, insiders have revealed that Amazon, which initially expressed interest in investing, has decided to withdraw its plans.

Amazon, known for designing Gravitron processors for AWS servers, was originally considering joining the investment group.

Notably absent from this list is Qualcomm, despite previous discussions about forming a consortium with other entities to pursue an ARM acquisition.

It’s important to note that the new shareholders will not gain positions on ARM’s board or exert control over the company’s strategic direction.

The primary goal seems to be establishing a safeguard against the possibility of any single company gaining complete control of ARM, a scenario reminiscent of Nvidia’s previous acquisition attempt.

ARM IPO: Samsung, Apple, Google Lead $50 Billion Funding Round

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