SoftBank is still trying to dump ARM after Nvidia’s failed takeover offer. Qualcomm is concerned, but after regulators canceled the Nvidia deal out of concern it will harm competition, there is no hope for a direct takeover. Instead, the company has a different plan, or should we say an old plan, as reports from two years ago indicated that Samsung was considering a similar idea.
The plan is to build a consortium of companies, each of which will own a small slice of ARM. “You would need the participation of many companies so that they have the net effect that ARM is independent”, CEO Cristiano Amon told the Financial Times.
Previously, Qualcomm was vehemently opposed to Nvidia’s acquisition plan with the same argument: ARM is critical to the tech business and being owned by a chip maker will be devastating to competition (SoftBank does not manufacture semiconductors). If many companies have a stake, the playing field will be leveled.
Pat Gelsinger, CEO of Intel, has already suggested that Intel could support such a consortium. Gelsinger met with Samsung boss Lee Jae-yong, reportedly, to discuss cooperation in that venture. Park Jung-ho, co-CEO of Korean chip maker SK Hynix, also talked about forming a consortium.
While these companies negotiate with each other, SoftBank is planning to do an IPO but retain a controlling stake. The company is expected to list ARM on a New York Stock Exchange. This could run into problems as the UK government, which is still debating what to do, could push ARM’s listing on the London Stock Exchange instead.
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