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SoftBank is desperate for capital due to recent bad bets. ARM is one of the most valuable assets they have. As for ARM itself, this probably isn't the best path
by BluSyn 5y ago
SoftBank is desperate for capital due to recent bad bets. ARM is one of the most valuable assets they have. As for ARM itself, this probably isn't the best path forward, and neither option would even be considered if it weren't for SoftBank's current predicament.
- rubatuga 5y agoPeople thought blocking this acquisition will result in more competition overall. Unfortunately, letting the stock market control ARMs actions will still lead to anti-competitive actions harming you as a customer. Not sure if blocking the merger will be overall better.
- jakey_bakey 5y agoIt's weird, according to the FT they only want the capital to finance share buybacks. So, basically, they want to prop up their share price.
- HWR_14 5y agoI didn't see that article, but that seems to be a two-step process for SoftBank to sell their shares on the open market without spoiling the market by public ally divesting themselves of shares. They sell new shares, then use the money that generates to buy a percentage of SoftBanks shares.
- avidphantasm 5y agoThis is why financial engineering and ultimately all Money-Money transactions are ultimately nihilistic and boring. Who cares how much money you have if you aren’t doing new/innovative/interesting things?
- perfopt 5y agoYou are right. They want to buy back shares. But it is also true that some of their bets like Didi and Wework did not do well. Also, they have money invested in China which seems stuck (just like many others I suppose).
- dannyw 5y agoyes, that is the core premise of a company.