back to article ARM moneymen OK buyout

ARM's shareholders have approved Japanese tech company Softbank's deal to buy the company for £24.3bn. The British chip designer's share price rose 0.18 per cent - an increase of 3p per share. ARM's headquarters is expected to remain in Cambridge. ® management intelligence

  1. paulf
    Alert

    Only in Newsbytes?

    Considering the acquisition price of £17/share (?) represents a major premium over the pre-announcement price many may have considered this EGM nothing more than a "rubber stamp" affair but surely this warranted a bit more prominent coverage than a few lines in Newsbytes? It does represent the end of independence for what many consider the jewel in Britain's technological crown after all.

    Hmm, sadly no Reg Tombstone icon any more...

    1. Charlie Clark Silver badge

      Re: Only in Newsbytes?

      We could have a competition for t-shirt designs for those soon to be paying for the premium with their jobs…

      Not that Softbank would ever go back on its word! Actually, this has all the hallmarks of a leveraged buyout before being flipped to private equity for asset stripping. I sincerely hope I'm wrong on this, but Softbank's debt is eye-watering.

      1. paulf

        Re: Only in Newsbytes?

        Likewise - I hope you're wrong for the same reasons. Softbank aren't magicking that £24bn out of thin air and the entities putting up that cash will want an RoI from a £17/share purchase that was previously generating a reasonable return on ~£10/share.

        Others have said it - the Softbank promises all sound a bit Kraft-y. If they don't keep their word what come back is there?

        I've racked my head since this deal was announced and just can't see any rational logic behind ARM being anything other than independent (i.e. the status quo). I guess that's why the current management extracted such a hefty take over premium but that will come at a price when the new owners want their pound of flesh.

        Sad times.

  2. Chris Evans

    I have a soft spot ARM but!

    I was an Acorn dealer and sold the first ever computer to use an ARM CPU, the Archimedes (I still selling them now into the retro market). When ARM was established it was owned 30% by Apple, 30% by VLSI and 40% by Acorn. At the time some of the Acorn share holders were probably not British. Recent reports have said 70% of ARM shares were owned by non UK holders. So it is isn't as a significant change in share ownership as a lot of people think. What will happen regarding paying tax and for employees remains to be seen. Employees may vote with their feet but they are a very bright bunch and maybe they will start up another company that can be sold for £24bn, though it did take ARM 26 years!

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