Arm’s IPO Won’t Be as Lucrative for SoftBank as Nvidia Deal
- Arm likely to fetch valuation of $25 billion to $35 billion
- The value of Nvidia’s bid had soared with its stock price
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When Masayoshi Son said that Arm Ltd. would go public after a proposed acquisition by Nvidia Corp. fell through, he suggested the initial public offering could end up being a more lucrative outcome for SoftBank Group Corp. It won’t be.
Nvidia had agreed to buy Arm for a combination of cash and stock, which was worth about $40 billion when announced in 2020 and rose to more than $60 billion as the bidder’s shares climbed. SoftBank will struggle to get the original price for Arm in an IPO -- and the Japanese company won’t be able to sell all of its stock.