Several companies, including Samsung and Apple, which are the top two smartphone makers in the world, have reportedly agreed to invest in ARM’s initial public offering. The British chip design firm is apparently targeting a valuation between the $50 billion and $55 billion mark, though it should be pointed out that the latest target is actually a step down from the $64 billion valuation at which SoftBank acquired its 25 percent stake in the company.
Apple and others have agreed to invest between $25 million and $100 million in ARM’s IPO
Apart from Apple and Samsung, notable names in the technology and chip industry, such as AMD, NVIDIA, Intel, Cadence Design Systems, Synopsys, and Alphabet, have agreed to invest in the IPO, according to Reuters. The newly published information states that there are talks to get more investors on board, as ARM may intend to hit close to the target valuation.
While the individual company’s investment figures have not been disclosed, the report states that NVIDIA, Apple, and others have agreed to invest between $25 million and $100 million in the IPO, with ARM and SoftBank keeping aside 10 percent of the shares to be sold in the IPO. Earlier, there were talks that Amazon would also be included in the pool of investors, but for undisclosed reasons, the retail giant has pulled out of the deal.
Each firm investing in ARM’s IPO has something to gain, so it is not at all surprising that Samsung and Apple would be involved in the mix, as with both companies now seemingly having a stake in the firm, they could have an edge in the industry. Apple will be looking to cement its authority in the ARM notebook and desktop space, while Samsung could use this commercial relationship to stage a comeback.
It should be noted that investing in ARM’s IPO does not come with a strategic advantage, nor would the British chip design firm give preferential treatment to the other party. However, the involvement of each company makes it harder for a competitor to acquire ARM later. So far, none of the entities involved have commented on the IPO, including ARM, so we will update our readers when we have more information on the matter.
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