Abstract
In mid-July 2022, Masayoshi Son, the Chief Executive Officer of SoftBank had to decide upon the best way to monetize its ownership of ARM after a proposed merger with Nvidia failed in February 2022 due to regulatory challenges. The plans for an IPO in London had to be shelved after the collapse of the UK government in early July. At the same time, SoftBank was in a precarious financial position due to large losses from its private equity Vision Fund investments, and the Nasdaq IPO market had dried up in 2022. Son had to consider heightened uncertainty as well as SoftBank's own financial pressures when making his decision on how to monetise Arm.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | F&A0579 |
| Title | SoftBank and its ARM in 2022 |
| Pages | 17 |
| Published on | Jul 31, 2025 |
| Year of Event | 2020-2022 |
| Authors | Agarwalla, Sobhesh Kumar; Varma, Jayanth R.; Virmani, Vineet; |
| Area | Finance and Accounting (F&A) |
| Discipline | Finance, Strategic Management |
| Sector | Telecom and Software |
| Learning Objective | 1. Evaluate the benefits of an IPO relative to selling to strategic or financial buyers. 2. Appreciate the issues involved in choosing a listing venue for an IPO. 3. Analyse the business of ARM and formulate the narrative that SoftBank would have to build about ARM during the IPO process, and apply standard financial models to arrive at a valuation of ARM. 4. Formulate an IPO strategy for ARM including timing, venue, issue size and indicative IPO valuation. |
| Keywords | SoftBank; ARM; Initial Public Offering; Masayoshi Son; Nvidia; Vision Fund |
| Country | United States |
| Organization | SoftBank and ARM |
| Access | For All |
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