SoftBank Group is reportedly in discussions to sell a 25% stake in chip designer Arm to Vision Fund 1 investors. A deal could boost returns for the $100 billion fund's backers like Saudi PIF and Mubadala before Arm's imminent IPO.
SoftBank currently owns 75% of Arm, which it is preparing to list on Nasdaq as early as September in a deal seeking $8-10 billion. By selling fewer shares in the public offering, SoftBank would retain a stake of 85-90% according to sources.
The potential transaction values were not disclosed. Talks are ongoing and no agreement is guaranteed. SoftBank has also spoken to tech giants like Amazon about anchoring the Arm listing.
An earlier $40 billion sale of Arm to Nvidia fell through due to antitrust concerns. SoftBank started the IPO process as an alternative exit.
SoftBank CEO Masayoshi Son has a real-time net worth of $24.8 billion. While SoftBank reported a net loss last quarter, its Vision Fund investment arm returned to profit driven by Artificial Intelligence companies. Vision Fund 1 recorded a $12.4 billion gain on its investments.
