SoftBank Plans To Sell 25% of ARM Holdings To Vision Fund

Subject: General Tech, Processors | March 11, 2017 - 10:02 PM |
Tagged: softbank, investments, business, arm

Japanese telecom powerhouse SoftBank, which recently purchased ARM Holdings for $32 billion USD is reportedly in talks to sell off a 25% stake in its new subsidiary to a new investment fund. Specifically, the New York Times cites a source inside SoftBank familiar with the matter who revealed that SoftBank is in talks with the Vision Fund to purchase a stake in ARM Holdings worth approximately $8 billion USD.

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The $100 billion Vision Fund is an investment fund started by SoftBank founder Masayoshi Son with a goal of investing in high growth technology start-ups and major technology IP holders. The fund is currently comprised of investments from SoftBank worth $25 billion, $45 billion from Saudi Arabia (via Saudi Arabia Public Investment Fund), and minor investments from Apple and Oracle co-founder Lawrence Ellison. The fund is approximately 75% of the way to its $100 billion funding goal with the state owned Mubadala Development investment company in Abu Dhabi and the Qatari government allegedly interested in joining the fund. The Vision Fund is based in the UK and led by SoftBank's Head of Strategic Finance Rajeev Mistra (Investment bankers Nizar al-Bassam and Dalin Ariburnu formerly of Deutsche Bank and Goldman Sachs respectively are also involved.)

It is interesting that SoftBank plans to sell off such a large stake in ARM Holdings so soon after purchasing the company (the sale finalized only six months ago), but it may be a move to entice investors to the investment fund which SoftBank is a part of to further diversify its assets. The more interesting question is the political and regulatory reaction to this news and what it will mean for ARM and its IP to have even more countries controlling it and its direction(s). I do not have the geopolitical acumen to speculate on whether this is a good or bad thing (heh). It does continue the trend of countries outside of the US increasing their investments in established technology companies with lots of IP (wether US based or not) as well as new start ups. New money entering this sector is likely overall good though, at least for the companies involved heh.

I guess we will just have to wait and see if the sale completes and where ARM goes from there! What are your thoughts on the SoftBank sale of a quarter stake in ARM?

Corsair Clarifies Upcoming Investment Deal With Francisco Partners

Subject: General Tech | May 2, 2013 - 01:04 PM |
Tagged: private equity, investments, corsair

Corsair recently reached out to the technology community to clarify the news of a new investor interested in the company. It turns out that Corsair is in talks with a private equity firm called Francisco Partners. The PC peripherals company wants to expand by making strategic acquisitions of smaller companies in the gaming and audio industry. In order to do that, Corsair needs cash, and without going public, one way to get that is to go with a private equity firm.

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Although it will not be official for a couple of weeks, according to Corsair, Francisco Partners will invest as much as $75 million in Corsair and become a shareholder in the privately-held company. The deal is simply a monetary one, with Francisco Partners providing needed cash in exchange for a share of the company. No management changes are planned, and the new investor will not become the majority shareholder according to Corsair.

Corsair recently acquired both gaming peripheral company Raptor Gaming and Simple Audio, a company that provides multi-room streaming audio solutions. Corsair plans to further aggressively pursue the gaming and music/audio markets in addition to its existing case, power supply, fan, and other PC peripheral lineups aimed at enthusiasts. I'm excited to see where Corsair goes from here as it grows and diversifies its business and product lines.