Two years ago, Nvidia’s bid to acquire chip designer Arm from SoftBank was abandoned due to “significant regulatory hurdles.” SoftBank’s billionaire founder, Masayoshi Son, faced disappointment as the proposed $40 billion deal fell through, just $8 billion higher than the purchase price in 2016. Instead, Arm went public the following year and has seen significant growth, with its market value reaching over $116 billion after a 48% surge in stock price on Thursday.
SoftBank retains approximately 90% of Arm’s outstanding stock, resulting in a substantial increase of more than $34 billion in its stake in the company in just one day. However, the rapid appreciation of Arm’s stock raises questions about how the market values the company. Investors may gain further insights into investor sentiment next month as the 180-day lockup period expires, allowing SoftBank to potentially divest some of its holdings.
Source (CNBC)
