Samsung, Apple, Google and Others Buy Billions in ARM’s Public Shares

Last month, chip designer ARM initiated the process of going public by filing for an IPO, and according to insiders who spoke to Reuters, numerous prominent tech companies have displayed keen interest.

The impending initial public offering is projected to establish a valuation ranging between $50 billion and $55 billion, with 10% of the shares designated for partners, while the remaining 90% will be retained by SoftBank, the company behind ARM.

Among the partners, Nvidia stands out—a company that previously sought to acquire ARM for $40 billion in a 2020 deal that was ultimately abandoned due to regulatory concerns.

Intel and AMD Also Onboard

Backing ARM are also several entities closely involved with ARM-based devices, including Apple, Alphabet (Google owner), and Samsung. Additionally, the list features the two prominent x86 giants, Intel and AMD. Notably, Cadence Design Systems and Synopsys are also included, with other potential partners adding to the roster.

Amazon and Qualcomm Backed Out

Apple and Nvidia are reportedly in agreement to acquire shares in the range of $25 million to $100 million each. Interestingly, Amazon, which had initially shown an intention to invest, has withdrawn its plans, as shared by insiders. It’s worth noting that Amazon, responsible for designing Gravitron processors for AWS servers, was initially part of the investment consideration.

Conspicuously absent from the list is Qualcomm, despite previous contemplation of forming a consortium with other entities to pursue an ARM acquisition. However, it’s important not to read too much into Qualcomm’s absence, as the new shareholders will not secure positions on ARM’s board or gain authority over the company’s strategic direction.

The primary objective appears to be creating a barrier against the potential of any single company acquiring full control of ARM, a scenario reminiscent of Nvidia’s previous attempt.

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