Chip designer ARM filed for an IPO last month and insiders have been talking to him Reuters report that many major tech companies are affected. The initial public offering will have a valuation of between $50 and $55 billion, with 10% of the shares reserved for partners (SoftBank will retain the remaining 90%).
The list of partners includes Nvidia, which attempted to acquire ARM in a $40 billion deal in 2020, a deal that failed due to concerns from regulators.
Other backers include companies heavily involved in ARM-based devices: Apple, Alphabet, Samsung. Then there are the two x86 giants, Intel and AMD. Cadence Design Systems and Synopsys are also on the list, as well as other notable partners.
Apple and Nvidia are said to have agreed to buy shares worth between $25 million and $100 million each. It is interesting to note that Amazon, which was initially supposed to also invest, has withdrawn according to insiders (Amazon designs Gravitron processors for AWS servers).
There is no mention of Qualcomm’s participation in the ARM IPO, although the company was considering forming a consortium with others to buy ARM. We shouldn’t make too much of this: The new shareholders will not be given a seat on ARM’s board or the ability to dictate the company’s strategy. The goal appears to be to make it harder for a company to fully acquire ARM (as Nvidia tried to do).
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