How SoftBank’s costly bet on the ‘internet of things’ backfired at Arm

Re:How SoftBank’s costly bet on the ‘internet of things’ bac... by achow on Monday February 14, 2022 @11:08PM (#30342678)

How it 'backfired', if it is going to do an IPO? Post IPO its market value could be much higher than acquisition price of $31B.

Failure to sell to Nvidia at 2X the acquisition price is not a failure, it was an honest attempt to make a profit.

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Re:How SoftBank’s costly bet on the ‘internet of things’ bac... by paxys on Monday February 14, 2022 @11:45PM (#30342891)

Analysts do not expect ARM to IPO at over $32B (https://www.reuters.com/markets/asia/arm-ipo-marks-sober-end...). That is why Softbank agreed to the acquisition offer in the first place, otherwise they would have just gone for an IPO directly.

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Re:How SoftBank’s costly bet on the ‘internet of things’ bac... by muhneesh on Tuesday February 15, 2022 @03:04AM (#30343913)

ARM will IPO well over $32B.

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Re:How SoftBank’s costly bet on the ‘internet of things’ bac... by perfopt on Monday February 14, 2022 @11:21PM (#30342741)

Correct. Here "backfired" is the investment did not make 10x return

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Re:How SoftBank’s costly bet on the ‘internet of things’ bac... by achow on Monday February 14, 2022 @11:33PM (#30342821)

Well, 10x was never a target, they were happy with 2x return from Nvidia acquisition.

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Re:How SoftBank’s costly bet on the ‘internet of things’ bac... by bloodyplonker22 on Tuesday February 15, 2022 @02:52AM (#30343842)

Absolutely wrong. They settled for the Nvidia acquisition after they saw things were not going as well as they planned after years and years. Now it looks like they will have to settle for even less.

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