Summary: Arm has had a wild ride in the last few years and his fate has been almost sealed several times. It was supposed to be owned by Nvidia at some point, but that merger didn’t materialize. Then they were going to put it on the NYSE, but the head of the Chinese division blocked it – twice. The board tried to fire him, but he refused their vote twice. Now he is revisiting the IPO. And if that’s not enough, Qualcomm and a group of investors have formed a consortium interested in keeping the company independent through an acquisition.

- Advertisement -

Qualcomm is reportedly interested in acquiring a large stake in Arm. She entered into a consortium with several other unnamed companies to propose to Arm. Current parent company of SoftBank. The consortium’s stated goal is to ensure the independence of the semiconductor company.

- Advertisement -

Nvidia has been tuned to close acquisition in September 2020, but under strict control examinationNvidia refused $40 billion deals. Because the buyout was rejected, SoftBank was planning a $60 billion IPO for Arm just before the end of fiscal year 2023.

However, Qualcomm CEO Christiano Amon warns that an IPO would be just as bad for the industry as the Nvidia deal.

- Advertisement -

“We are interested in investing,” Amon told the Financial Times. “This is a very important asset and will be essential to the development of our industry.”

Qualcomm relies heavily on the Arm architecture to provide SoCs to multiple OEMs. If one corporation buys enough of a majority stake or buys the company outright, it and other firms making Arm-based products could be adversely affected. Amon said the company needs the participation of multiple companies with stakeholders to remain independent and not just report to one controlling entity, but also not name names.

“It is necessary that many companies participate in the project, so the result is that Arm is independent,” said the head of Qualcomm.

Qualcomm and its consortium have not yet entered into negotiations with SoftBank. Amon said he wants to wait until Arm China’s current problems are resolved. These problems primarily fall on the shoulders of the head of the Chinese division, whom the board has tried several times to remove.

Although SoftBank announced a potential initial public offering on the New York Stock Exchange almost two years ago, even those plans remain in question. In February 2022, the head of Arm China, Allen Wu, entered legal challenge to the IPO. This is the third time Wu has tried to block the move since 2020.

The IPO also ran into valuation problems because, although the Chinese government voted unanimously to fire Wu, he has the company’s official seal and remains the company’s legal representative. In fact, he must sign any decisions of the board of directors, so he ignored the votes about his dismissal. Wu also controls a key investment firm that gives him power over the majority of Arm China’s shareholders.