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I am not sure if an IPO is even better than a Nvidia aquisition. On one hand Nvidia is Nvidia. They said they want to keep ARM neutral, and it would financiall
by brucethemoose2 3y ago
I am not sure if an IPO is even better than a Nvidia aquisition.
On one hand Nvidia is Nvidia. They said they want to keep ARM neutral, and it would financially benefit Nvidia to keep ARM neutral... But that is not their nature. They just can't help themselves.
On the other hand, the ever tightening short term revenue pressure from public markets is exactly what ARM doesn't need.
Maybe the tech stakeholders will keep enough equity to ease the pressure?
- mrDmrTmrJ 3y agoThe article is really confusing, in that it first says these corporates have 'agreed to this valuation' (is leaking that even legal?). But then we learn the investment amounts, "Apple, Nvidia and the other strategic investors have agreed to invest between $25 million and $100 million each in the blockbuster IPO, the sources said." Which seems tiny for a $50-$55B deal. Each of those companies could invest billions if they wanted to... This really reads like a set of leaks from Softbank to drum up interest in the deal. But I still fear ARM's lacking a corporate strategy (& deep cash reserves to continue to invest) post IPO. I have to imagine most of ARMs customers are spending far more on chip R&D than ARM itself. Nvidia purchasing ARM would have provided both huge investment, and roadmap clarity - though a roadmap most synergistic to buying a ton of Nvidia products too.