Amazon could become Major shareholder of Arm’s IPOthe British chip manufacturer owned by Softbank, as various sources tell Reuters. The company plans to debut on the floor this month in September with a valuation between $60,000 and $70,000 million, aiming to capitalize on the popularity of artificial intelligence (AI) chips. Therefore, Arm’s IPO would be the largest in the history of the tech sector.
The Japanese conglomerate, which acquired Arm in 2016, has reportedly stepped up efforts over the past month to secure investor entry into the British company’s capital in anticipation of its takeover Exit to the Nasdaq electronic trading flooras two advisers familiar with the matter have told the Financial Times.
The agreement between the company founded by Jeff Bezos and the owners of Arm could be finalized with one Collection between 8,000 and 10,000 million dollars.
In that vein, the same sources have explained that the talks had initially focused on Nvidia, Intel and other chipmakers, but have since expanded to other big tech companies, e.g alphabetgoogle matrix, manzana, Amazonas well as other companies in other industries that are heavily dependent on semiconductors.
Amazon: A “strong” endorsement of Arm’s push
Through Amazon Web Servicesthe company led by Andy Jassy is one of the world’s largest providers of cloud computing alongside Microsoft and Google, so an investment by Amazon would be considered “strong support» on Arm’s foray into the server market, which «will be critical to growth at a time when its core smartphone market is in decline“, FT has pointed out.
For that reason, bringing a leading anchor investor into the possible IPO would help support Arm’s shares as SoftBank sells its stake in the company.