SoftBank is considering a possible sale of chip designer Arm Holdings, according to a new report from the Wall street journal. Apple licenses Arm Holdings technology for the A series processors used in the iPhone and iPad, as well as the upcoming Apple Silicon chips for Mac.
SoftBank acquired Arm Holdings for $ 32 billion in 2016, but the Japanese conglomerate is now looking to “raise cash from its varied stable of assets,” the report explains. SoftBank plans to sell up to $ 41 billion in assets.
SoftBank has previously indicated that it could return Arm to the public markets at some point. However, this move has gained urgency as SoftBank seeks to raise cash from its varied asset stable to calm activist investor Elliott Management Corp., which has been stirring up changes at the company.
SoftBank has said it plans to sell up to $ 41 billion in assets to shore up its struggling portfolio and buy back its own shares, which trade at a steep discount relative to the value of net assets.
The acquisition was originally praised by SoftBank chief Masayoshi Son, but the tone has recently changed as sales have flattened:
SoftBank chief Masayoshi Son hailed the acquisition as a “paradigm shift” at the company, allowing it to tap into the potential of the Internet of Things, which refers to the connectivity of everyday devices. But sales of the software Arm developed to manage connected devices have been relatively flat, excluding a boost from acquisitions.
Apple began licensing Arm Holdings technology in 2006 for the iPhone. A-series processors are now used on iPhone and iPad, as well as products like HomePod and Apple TV. Apple has also just confirmed at WWDC that the Mac will transition to Apple Silicon processors, which will also be based on Arm technologies.
If SoftBank ends up selling Arm Holdings or going public with the company, it’s likely to have little impact on Apple. That said, Apple may be interested in acquiring Arm Holdings, something that was first rumored in 2010. Interestingly, Arm Holdings was founded in November 1990 as Advanced RISC Machines Ltd and structured as a joint venture between Acorn Computers, Apple. , and VLSI technology.
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