-
Tips for becoming a good boxer - November 6, 2020
-
7 expert tips for making your hens night a memorable one - November 6, 2020
-
5 reasons to host your Christmas party on a cruise boat - November 6, 2020
-
What to do when you’re charged with a crime - November 6, 2020
-
Should you get one or multiple dogs? Here’s all you need to know - November 3, 2020
-
A Guide: How to Build Your Very Own Magic Mirror - February 14, 2019
-
Our Top Inspirational Baseball Stars - November 24, 2018
-
Five Tech Tools That Will Help You Turn Your Blog into a Business - November 24, 2018
-
How to Indulge on Vacation without Expanding Your Waist - November 9, 2018
-
5 Strategies for Businesses to Appeal to Today’s Increasingly Mobile-Crazed Customers - November 9, 2018
Chip designer ARM to be bought by SoftBank for $32bn
United Kingdom -based ARM Holdings PLC Monday confirmed to accepted a buyout offer worth more than 24.3 billion pounds ($32 billion) from SoftBank Group Corp. “Britain is open for business – and open to foreign investment”.
Advertisement
ARM Holdings (ARMH) is soaring more than 40% on Monday after Japan’s SoftBank (SFTBY) agreed to buy the firm for $31.4 billion in cash.
Muller said the rise of rival computers based on Intel chips dealt Acorn a fatal blow, but despite the failure Apple (AAPL.O) had seen something it liked in the technology, which it wanted to use in its Newton handheld device. “I did not make the investment because of Brexit”, Masayoshi Son insists.
The deal was branded “one of the largest ever from Asia into the UK” by Chancellor Philip Hammond and valued the technology firm at 1700p per share, a 43% premium on Friday’s closing share price of 1189p.
“This investment also marks our strong commitment to the United Kingdom and the competitive advantage provided by the deep pool of science and technology talent in Cambridge”. That sent ARM’s share price rocketing by about 41 per cent on Monday.
“We will think it likely that Sprint/SoftBank will at least attempt a deal; however, the odds of success are marginally less likely, which is a modest negative for Sprint and the rest of the group”.
Son said he had been following ARM for the last 10 years and decided now was the right time to invest in a firm that provides the technology in almost all smartphones including Apple’s (AAPL.O) iPhone and Samsung’s (005930.KS) Galaxy.
ARM Chairman Stuart Chambers said in a statement that his company accepted Softbank’s “compelling offer” with assurances “that ARM will remain a very significant United Kingdom business and will continue to play a key role in the development of new technology”.
The ARM purchase is the first major announcement from SoftBank after Nikesh Arora, who had joined from Google in 2014, said last month he was stepping down as Softbank president. In 2013, the company purchased US telecom Sprint, and has since lost money on the deal.
Son, whose lucrative early investments include Alibaba, said then that he wanted to “cement SoftBank 2.0”, turn around loss-making U.S. carrier Sprint and “work on a few more insane ideas”.
The move marks the Japanese telecommunications corporation’s desire to move into mobile internet opportunities.
Son also said during a news conference Monday that his confidence in a Sprint turnaround helped pave the way for the blockbuster acquisition, according to Reuters.
But analysts had expected it to use the cash to reduce debt or give shareholders a windfall by buying back its own shares. Its shares have actually climbed nearly 17 per cent since the vote.
Advertisement
“It is also intended that ARM will remain an independent business within Softbank, and continue to be headquartered in Cambridge, the United Kingdom”, said Son.