Industry Expert Blogs

Over the weekend it seems that Softbank have closed a deal to acquire ARM Holdings (what we in the industry simply think of as ARM) for an all-cash deal for around $32B. The deal is expected to be formally announced on Monday but since the Wall Street Journal, the Financial Times and the New York Times are all carrying the story, it seems that it is not just an unconfirmed rumor. ARM's shares are up 18% this year although a lot of that is simply the weakness of the British pound after the Brexit vote to leave the European Union. The current market cap is around $22B so the acquisition price is a premium of almost 50%.

Softbank is a Japanese company headquartered in Tokyo. In the US they are probably most well-known as owning a controlling interest in Sprint. Softbank is currently the 3rd largest public company in Japan (behind Toyota and Mitsubishi) even though you have barely heard of it.

Click here to read more ...