A boost has recently been given to Samsung’s proposed takeover of British chip creator ARM. The founder and CEO of ARM’s parent firm, SoftBank Group, Masayoshi Son, has made it known that he would want to discuss an ARM transaction with the South Korean giant. He didn’t already make an offer to sell Samsung the chip designer; instead, he referred to any possible agreement as a strategic collaboration. However, if the two parties can come to an agreement about the antitrust issues surrounding such a purchase, it is more than just a hint that SoftBank will sell ARM to the Korean conglomerate.
Son’s remarks come ahead of his anticipated trip to South Korea later this month. The meeting with the Japanese business billionaire would take place during the future trip, according to Samsung CEO Lee Jae-yong. Earlier this week, Lee made his proposal public during a press conference. He dismissed media inquiries about potential negotiations for an ARM transaction by declaring, “I have no idea what it is,” even though Son might have such a proposal.
A day following Lee’s remarks, though, Son did make a proposal—albeit one that was unofficial. The SoftBank CEO remarked, “I’d want to discuss with Samsung Electronics about a strategic cooperation with ARM,” in a statement to the media in his native country ( via ). We are unable to determine what that strategic cooperation would entail because he withheld any more details. However, there are numerous speculations that Samsung is interested in purchasing ARM. Son’s remarks so serve simply to further the rumors.
Advertisement SAMSUNG A Strategic Alliance With Arm Might Be Required More than 90% of smartphones sold worldwide employ ARM technology, demonstrating how crucial it is. It creates the CPU cores that serve as the foundation for CPUs in smartphones. As a result, it is becoming less probable that one business will buy ARM altogether. Giving any tech company complete control over ARM might lead to a monopoly, according to widespread industry fear. This is especially true for chip or smartphone manufacturers.
Similar regulatory obstacles prevented SoftBank and Nvidia from completing their agreement, which they had previously signed. Therefore, Samsung might not be able to buy ARM by itself. However, if the corporation is interested in buying the chip creator, it might put together a coalition. Or perhaps Son will simply advise Samsung to purchase ownership in ARM. After his meeting with Samsung CEO Lee Jae-yong next month, we ought to have a clearer picture.
SoftBank has been seeking an IPO (initial public offering) of ARM ever since the agreement with Nvidia failed. The Japanese owner of the company might list it on the London Stock Exchange or the New York Stock Exchange if it doesn’t sell in the upcoming months. We’ll keep you informed.
