SoftBank Agrees to Buy ARM Holdings for More Than $32 Billion

Erinyes

Regular
From the WSJ - http://www.wsj.com/articles/softbank-agrees-to-buy-arm-holdings-for-more-than-32-billion-1468808434
Both companies’ boards have agreed to the deal

HONG KONG—Japan’s SoftBank Group Corp. has reached a more than $32 billion deal to buy U.K.-based chip-designer ARM Holdings PLC, marking a significant push for the Japanese telecommunications giant into the mobile internet, according to a person familiar with the situation.

The all-cash deal, which is expected to be announced Monday before the opening of London trading, comes on the heels of SoftBank Chief Executive Masayoshi Son’s decision to take back the reins of the company’s investment strategy from his former deputy and designated successor, Nikesh Arora, who resigned in June.

Quite the deal..google tells me the current market cap is ~$32B so this represents almost a 100% premium. Maybe there were other bidders in the fray?

Edit: Current P/E is already 48..and a 100% premium would bring it to almost a 100. I know its ARM and of course the long term potential is huge..but its still a very high price to pay.
 
Last edited:
You might say, "crazy, why would they sell out?", but when the profits are this big you'd basically be nuts not to say yes... :p Who owns ARM right now? Or rather, who are the major stock owners? :p
 
I'm not sure how many of ARM's shares are held on the US stock market V UK stock market, but apparently yen has faired even better than the $, against the £. Although the £/$ price is quite impressive, they are likely getting in for 10%+ less in yen, than 3 weeks ago.
 
Back
Top