Monday, July 18, 2016

SoftBank Buys ARM, a Mobile Chip Designer, for $32 Billion - The New York Times

Another Brexit bonus

"ARM Holdings may not be a household name, but it is likely that one of the company’s chip designs powers your smartphone, tablet or other mobile device. It designs chips and parts of chips that use less power so that they can be used in smaller gadgets. ARM had a market capitalization of about $22 billion as of Friday’s close, and the proposed acquisition represents a 43 percent premium on the company’s closing share price last week.

Turmoil from last month’s Brexit vote likely made the deal more lucrative for SoftBank. The British pound has weakened since the vote, which makes purchasing British companies like ARM cheaper for companies that deal primarily in other currencies. Compared with this same time in 2015, for example, pound-denominated assets are 30 percent cheaper for buyers holding yen."
SoftBank Buys ARM, a Mobile Chip Designer, for $32 Billion - The New York Times
Post a Comment