Menu
  • Home
  • London Exchange
  • Euronext
  • Australian Exchange
  • Wire
  • Contact Us
  • Business & Finance
NewsnReleases

SoftBank in talks to buy back Arm stake from Vision Fund 1 ahead of IPO

Posted on August 14, 2023August 14, 2023

SoftBank Group Corp is in talks to buy back the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, Reuters reported on Monday.

The negotiations come as SoftBank, which currently owns 75% of Arm, is preparing to list the chip designer on Nasdaq next month at a valuation of $60 billion to $70 billion, according to the report.

The exact valuation for Arm that the two sides are discussing for their transaction could not be learned, and the sources cautioned that it is possible that no agreement will be reached, Reuters said.

If a deal is inked, SoftBank would be selling fewer Arm shares in the IPO and would be likely retaining a stake of between 85% and 90%, according to the sources, who requested anonymity because the negotiations are confidential.

SoftBank, VF1 and Arm declined to comment. Raine, an investment bank that is advising SoftBank on the deal, did not immediately respond to requests for comment, Reuters added.

Arm’s IPO would be a boon not just for VF1 but also for SoftBank, which reported its third consecutive quarterly loss last week. It was hit by declines in the valuations of major holdings such as Chinese e-commerce firm Alibaba Group, German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S…

SoftBank, which took Arm private for $32 billion in 2016, sold a 25% stake in the company to VF1 for $8 billion in 2017. SoftBank has also been in talks with several technology companies about bringing them onboard as cornerstone investors in Arm ahead of its IPO, including Amazon.com Inc, Reuters has reported.

SoftBank last week said VF1 delivered a gain of $12.4 billion on $89.6 billion of investments, while VF2, a second fund it raised in 2019, carried a $18.6 billion loss on $51.8 billion of investments.

SoftBank Group plans SoftBank Vision Fund 2

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Track all markets on TradingView

Investing.comThe Exchange Rates are powered by Investing.com.

Site Navigation

  • Home
  • Listed Companies
  • Contact Us
  • London Stock Exchange
  • Singapore Exchange
  • Canadian Exchange
  • Australian Exchange
  • Oslo Bourse
  • PSX
  • Ratings
  • Euronext
  • MENA
  • Nasdaq Nordic
  • Wire
  • Business & Finance
  • Gadget Reviews
  • About Us: A Comprehensive Financial News Database

All news and articles on NewsnReleases are based on press releases, corporate announcements and analysts’ reports issued to London Stock Exchange (LSE), Euronext, Singapore Exchange (SGX), Japan Stock Exchange (JPX), Dubai Financial Market (DFM), Saudi Stock Exchange (Tadawul), Qatar Stock Exchange (QSE), BSEIndia, Australia Stock Exchange etc.

Listed Companies

Equity Markets and Stock Exchanges

NNR
©2025 NewsnReleases | WordPress Theme by Superb WordPress Themes
Menu
  • Home
  • London Exchange
  • Euronext
  • Australian Exchange
  • Wire
  • Contact Us
  • Business & Finance