SoftBank Group is looking into different possibilities for Arm, the UK-based chip design company, including a possible sale, the Wall Street Journal reported, citing sources familiar with the matter.
Arm recently announced plans to reorganise by moving its two IoT businesses to parent Softbank, which is looking to shore up its finances after investment mishaps. Softbank bought Arm four years ago for USD 32 billion and is now considering a full or partial sale, or a public offering. The review is still at an early stage, helped by Goldman Sachs, and Softbank might also choose to do nothing, the report said.
SoftBank had earlier indicated it might return Arm to the public market at some point. The possible divestment is part of a bigger plan at SoftBank to sell up to USD 41 billion in assets in order to reduce debt and buy back shares, which trade at a steep discount relative to net asset value. The company recently raised USD 16.6 billion from the sale of T-Mobile US shares and still owns large stakes in Alibaba and Japanese telecom operator Softbank.
