SoftBank Buys Vision Fund's Stake In Arm At Valuation of $64 Billion

According to Reuters, SoftBank has acquired the 25% stake in Arm it does not directly own from its Vision Fund unit. The new deal values the chip designer at $64 billion. From the report: Details of the transaction will be unveiled on Monday when Arm makes public the filing for its blockbuster stock market launch, the sources said, requesting anonymity as these discussions are confidential. SoftBank is now expected to sell fewer Arm shares in the initial public offering (IPO) and would likely be retaining a stake of as much as 90% in the company, according to the sources, adding that Arm's capital raising from the IPO would be less than the range of $8 billion to $10 billion it was earlier planning. SoftBank is currently in talks to list Arm at a valuation of $60 billion to $70 billion in the IPO, which is expected to happen in September, Reuters has previously reported. SoftBank, which took Arm private for $32 billion in 2016, sold a 25% stake in the company to Vision Fund 1 (VF1) for $8 billion in 2017. The deal removes a potential overhang for Arm's stock following the IPO, because VF1 had initially planned to cash out its stake in the stock market over time following the listing, while SoftBank has indicated it will remain a long-term strategic investor.

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