SoftBank To Sell Arm Holdings? Company Hires Goldman Sachs To Explore IPO, Sale Options For Chip Designer

Japanese holding company SoftBank is considering an IPO or sale for Arm Holding, the chip designer it acquired in 2016 for $32 billion. The Wall Street Journal cited sources who claim that the company has hired Goldman Sachs to help it begin to explore its options.

SoftBank had reportedly been considering an IPO for Arm prior to this development. However, it began to consider a sale after an outside party expressed interest in the U.K. chip company.

SoftBank has notably been attempting to raise funds, aiming to accrue $100 billion to help keep companies in its “Vision Fund” weather the economic hardships of the coronavirus pandemic. Recently, it sold a $21 billion stake in T-Mobile and bought back billions of dollars in shares. Going forward, SoftBank also plans to sell around $41 billion in assets to reach its goal.

The likelihood of a deal for Arm remains unclear. Despite insiders claiming interest from some parties, the Journal noted that it is unknown how much actual interest there is in the company.

Chips produced by Arm have been growing in prominence over the years and are now being utilized in products from Apple, Samsung, and Qualcomm. While available in a wide range of products, Arm has seen the most success providing hardware for mobile devices, including the iPhone and iPad. Apple is also reportedly working on new Mac computers with Arm chips to be released later in the year.

SoftBank initially purchased the Cambridge-based Arm in order to further its investment in the “Internet of Things,” a tech concept based around the inter-linking of multiple smart devices – including appliances, mobile devices, and more – allowing them to seamlessly interact and share information and functions. The divisions within Arm focused on this goal have been transferred to SoftBank, reportedly so the company can focus on an IPO.