SoftBank Group Corp. is reportedly in discussions to acquire the 25% stake in chip designer Arm Ltd. currently held by its Vision Fund 1. This comes ahead of Arm’s highly anticipated initial public offering (IPO).
According to Reuters, SoftBank, which already owns 75% of Arm, is negotiating a deal with VF1, the $100 billion investment fund it established in 2017. The potential agreement could provide a significant boost to VF1 investors who have seen minimal returns over the years. Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Co. are among VF1’s key investors.
SoftBank is planning to launch Arm’s IPO in September, a move that is expected to be the largest IPO of the year on Wall Street. The company aims to raise $8 billion to $10 billion at a valuation of approximately $60 billion to $70 billion.
Several prominent tech companies, including Amazon.com Inc., Intel Corp., and Nvidia Inc., are reportedly vying to become anchor investors in Arm’s IPO.
In a positive development, SoftBank recently announced that its tech-focused Vision Funds achieved a quarterly profit for the first time in 18 months.
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