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This is the second major company in past few years where SoftBank pretty much served as an intermediary for merging of companies. They bought Sprint a few years
by disown 6y ago
This is the second major company in past few years where SoftBank pretty much served as an intermediary for merging of companies. They bought Sprint a few years ago and merged it with T-Mobile. Now they are selling ARM, which they bought just 4 years ago, to NVDA. Wonder if this was their plan all along or if they had to change plans due to financial issues or if they faced regulatory/geopolitical issues.
- Hongwei 6y agoIsn't this the standard private equity playbook? Buy, hold, and flip? Though Softbank isn't a VC and I haven't heard of mass cost-cutting after they buy something.
- bluedevil2k 6y agoPrivate equity would take on a lot of debt, pay themselves bonuses, then flip the company.
- stu2b50 6y agoVCs actually don't do that, though. VCs invest earlier and usually for a smaller, non controlling stake. PEs do the buy complete company, often through an LBO, "restructure", flip for a profit.