Japanese telecom powerhouse SoftBank, which recently purchased ARM Holdings for $32 billion USD is reportedly in talks to sell off a 25% stake in its new subsidiary to a new investment fund. Specifically, the New York Times cites a source inside SoftBank familiar with the matter who revealed that SoftBank is in talks with the Vision Fund to purchase a stake in ARM Holdings worth approximately $8 billion USD.
The $100 billion Vision Fund is an investment fund started by SoftBank founder Masayoshi Son with a goal of investing in high growth technology start-ups and major technology IP holders. The fund is currently comprised of investments from SoftBank worth $25 billion, $45 billion from Saudi Arabia (via Saudi Arabia Public Investment Fund), and minor investments from Apple and Oracle co-founder Lawrence Ellison. The fund is approximately 75% of the way to its $100 billion funding goal with the state owned Mubadala Development investment company in Abu Dhabi and the Qatari government allegedly interested in joining the fund. The Vision Fund is based in the UK and led by SoftBank's Head of Strategic Finance Rajeev Mistra (Investment bankers Nizar al-Bassam and Dalin Ariburnu formerly of Deutsche Bank and Goldman Sachs respectively are also involved.)
It is interesting that SoftBank plans to sell off such a large stake in ARM Holdings so soon after purchasing the company (the sale finalized only six months ago), but it may be a move to entice investors to the investment fund which SoftBank is a part of to further diversify its assets. The more interesting question is the political and regulatory reaction to this news and what it will mean for ARM and its IP to have even more countries controlling it and its direction(s). I do not have the geopolitical acumen to speculate on whether this is a good or bad thing (heh). It does continue the trend of countries outside of the US increasing their investments in established technology companies with lots of IP (wether US based or not) as well as new start ups. New money entering this sector is likely overall good though, at least for the companies involved heh.
I guess we will just have to wait and see if the sale completes and where ARM goes from there! What are your thoughts on the SoftBank sale of a quarter stake in ARM?