Arm, a chip design company, was recently acquired by SoftBank, a major shareholder. The acquisition took place in the Nasdaq stock market last night, with the trading symbol “ARM.” On the first day of trading, the stock price increased by almost 25%, reaching $63.59 per share, up from the IPO price of $51. The total value of the deal amounted to a staggering $6.52 billion.
Jason Child, Arm’s CEO, explained in an interview that the company will focus on growth, particularly by increasing the royalties from chip design and expanding its portfolio of designed products. Interestingly, half of these royalties come from chips designed by Arm between 1990 and 2012.
Masayoshi Son, CEO of SoftBank, believes that Arm has even more growth potential due to its expertise in chip design and its utilization in AI chips. Regarding SoftBank’s ownership of Arm, Son stated that they will hold onto the shares for as long as possible.
This exciting development in the tech industry showcases the continuous advancements in chip design and the potential for future growth in this field. With Arm’s dedicated team across the globe, including offices in Cambridge, North America, India, and Europe, we can expect further innovations and breakthroughs in the Arm compute platform.
In conclusion, the acquisition of Arm by SoftBank marks a significant milestone in the chip design industry. With the rapid growth of AI and the commitment of Arm’s team, we can anticipate exciting developments and advancements in the future. Together, Arm and SoftBank aim to shape the technology landscape and build a promising future.
TLDR: SoftBank, the major shareholder of Arm, acquired the chip design company in the Nasdaq stock market. The stock price rose by 25% on the first day of trading, reaching $63.59 per share. Arm’s CEO emphasizes the company’s focus on growth and increasing royalties from chip design. SoftBank believes that Arm has great potential for further growth, particularly in AI chips. With Arm’s global team and offices around the world, innovative developments are expected in the Arm compute platform. This acquisition marks a significant milestone in the chip design industry, shaping the future of technology.