Semiconductor design company Arm and Samsung Electronics might be crossing paths again, as the chip designer is reportedly in talks with ten or more companies and is negotiating for one or more anchor investors to kickstart its IPO (initial public offering).
Arm has been the topic of conversation for the past year or so, from speculations that the company will be outright purchased by Nvidia — a deal that fell through last year — to newer talks about the company wanting to sell shares on Nasdaq.
According to Reuters, Arm wants to raise between $8 billion and $10 billion from one or more anchor investors before its initial public offering (IPO). In other words, it seeks to bolster the value of its shares through an investor before entering the stock exchange market.
Samsung Electronics might become an Arm investor
A new Reuters report citing “sources familiar with the matter” says Arm is presently talking to at least ten companies, seeking investors in the IPO. Among these companies are Intel, Alphabet, Apple, Microsoft, TSMC, and of course, Samsung Electronics.
No decision has been made yet, and these discussions are preliminary. Sources say that the final decision regarding an anchor investor(s) won't be clarified before August.
An anchor investor is an institution that buys a large number of shares at a fixed price before the IPO. It is key to remember that Arm doesn't seek to change its board or relinquish control.
The anchor investment won't imply changes in company structures, board of directors, or leadership. It's a stock exchange investment rather than a company buyout, and Softbank will retain ownership over Arm. In other words, Samsung may choose to make an investment and buy a lot of Arm stocks before the IPO, but that won't give it any control over Arm as a company.
In October last year, Softbank CEO Masayoshi Son and Samsung's Lee Jae-yong met to discuss a potential strategic alliance, but at that time, it didn't seem like an investment in Arm was on the table.
