Softbank determined to acquire a 25% stake in the Vision Fund

As previously rumored, Softbank has definitively secured a purchase of a 25% stake in Arm, held by the venture capital fund SoftBank Vision Fund 1 (VF1), for a price of $16 billion, thereby achieving a complete 100% control over Arm ahead of its anticipated public relisting.

Currently, Arm is slated for a re-listing on the NASDAQ in New York come September, with a market valuation approximating $64 billion, nearly twice the price Softbank paid for its acquisition in 2016.

While Arm has yet to disclose its public offering price and objectives, prevailing opinions suggest that Arm aims to raise funds between $8 billion and $10 billion through its relisting. Insiders claim that Arm could potentially submit its preliminary listing documents as early as the coming Monday, though official statements from Arm remain forthcoming.

As for Softbank’s acquisition of the full 100% control over Arm, it is envisaged to allow Softbank to diminish its selling stake, maintaining a more robust control over Arm. This strategic move not only fortifies its dominant position but also prevents giants like Intel, Qualcomm, and Amazon from acquiring increased shares in Arm, which might otherwise lead to undue influence over Arm’s future trajectory.