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Thread: SoftBank acquires ARM for £23.4 Billion

  1. #1
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    Post SoftBank acquires ARM for £23.4 Billion

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    Here's the SoftBank dog guarding the entrance to the company's Ginza store in Tokyo, Japan—taken by yours truly last winter. I know SoftBank as the Japanese carrier that snagged exclusive Japanese rights to the iPhone back in 2008. Others may know SoftBank as the controlling stakeholder in U.S. carrier Sprint. Now, after an all-cash deal announced this morning, we'll all know SoftBank as the new owner of ARM Holdings, designers of the chip likely to be powering the smartphone that you're using right now.

    The Verge notes that ARM is a much smaller company than its nearest rival, Intel, but also has much less overhead since it doesn't actually manufacture its own chips—instead licensing its designs to manufacturers like Qualcomm.

    A British Pound weakened by Brexit results was the likely motivator for the deal, valued at over $30 billion USD. It's worth mentioning that SoftBank paid a premium of 43% per share for their acquisition.

    But why buy ARM at all? Here's SoftBank CEO Masayoshi Son to explain, via Android Central:

    We have long admired ARM as a world renowned and highly respected technology company that is by some distance the market-leader in its field. ARM will be an excellent strategic fit within the SoftBank group as we invest to capture the very significant opportunities provided by the "Internet of Things".

    This is one of the most important acquisitions we have ever made, and I expect ARM to be a key pillar of SoftBank's growth strategy going forward.
    Sources: Android Central, The Verge, Wikipedia
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  2. #2
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    Feb 2012
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    $30 billion to spend on a company out of the blue or not put forth even a meager effort to make Sprint viable in the USA?

    Thanks foreign investment!

  3. #3
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    Dec 2010
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    ARM makes money. And they are growing.

    If Sprint does a secondary offering (print new shares to buy), it will ruin the bond ratings. That is the only way SoftBank can recapitalize Sprint. They can give secured loans only to a point.

    SoftBank needs to participate in 600mhz to secure Sprint's future. If they don't, Sprint un-backed by Softbank will have to pay MORE for spectrum later. Softbank could buy Spectrum directly now in the 600mhz and lease it to Sprint. All this low band is going to go up in value as more is not coming. Only Microwave. And we know 5G is like a giant Hotspot with very limited range.

    The 3G networks are only going to be more and more loaded. Why don't they just re-purpose 3g PCS for LTE and leave 1 800mhz Advanced for voice? This will get the speeds up. I know they will lose coverage, but they have roaming and most of these customers are going to leave anyway. They will leave when 3g speeds continue to drop nearing 1x speeds in the near future. Hence why they must re-band.

    What are they waiting for? Why won't they get ahead of the curve? The 3G stuff is going to be unusable and if you can't get 2.5 covering it soon, then get it rebanded. Maybe make some of the customers happy and keep them instead of losing even more later.

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