Amazon’s logo is exhibited at its logistics center in Lauwin-Planque, northern France, on November 15, 2022. REUTERS/Pascal Rossignol/File Photo: “…
On Tuesday, sources close to the negotiations revealed that Amazon.com (AMZN.O) is in talks about combining with technology companies to become a key investor in SoftBank Group Corp’s (9984.T) Arm Ltd before its IPO.
The fact that Arm’s design is used by Amazon Web Services, the cloud business’ manufacturing arm, highlights its position in the field of cloud computing.
One source has stated that Arm will be listed on the Nasdaq in early September. Reuters reports that the company is seeking to raise between $8 billion and $10 billion.
Arm and Amazon opted not to respond.
Reuters has reported that Arm has been in talks with approximately 10 technology companies, including Intel, Google, and Nvidia, about investing in the company before it goes public. These investors would not be given any board positions or authority over its operations.
According to an insider, Arm is optimistic that enlisting cornerstone investors will enhance its relationship with major clients and increase the company’s appeal for the IPO.
The IPO is likely to be advantageous for SoftBank, which is struggling to recover from the decline in its Vision Fund, as many of its technology startup investments have soured.
SoftBank has been pursuing a listing for Arm since the company’s proposed sale of the chip designer to Nvidia for $40 billion fell apart last year due to protests from U.S. and European antitrust regulators.
Arm’s business has a better position than the larger chip industry due to its emphasis on data center servers and personal computers, which generate more revenue through royalty payments.
Echo Wang and Anirban Sen provided reporting from New York, while Jeffrey Dastin and Stephen Nellis contributed to editing in San Francisco.
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