NVIDIA's deal to buy UK processor architecture developer Arm, which fell apart this spring due to opposition from regulators and activists, prompted Japan's SoftBank Corporation, the current asset owner, to bring Arm shares to the stock market, but it expected to do so by March 31, 2023.Now there is information that the IPO could take place later next year.Image source: Getty ImagesThe fact is that in the calendar of Japanese SoftBank in March next year ends another fiscal period, and this milestone was originally seen as a benchmark for the return of Arm shares to the stock exchange.SoftBank's priority remained the idea of placing Arm shares on the U.S.stock exchange, as this would have raised more funds, but British authorities insisted on a dual offering that would have brought Arm shares back to the London Stock Exchange as well.Before SoftBank bought Arm for $32 billion in 2016, the last of the companies remained public.The Register reports, citing its own sources, that Arm shareholders these days began receiving notices that a public offering would take place later in 2023.Arm officials have confirmed that such discussions are underway, but no final decision has yet been made.The current macroeconomic situation prevents the placement of shares at the stock market in the first quarter.Interestingly, Masayoshi Son, head of SoftBank's parent company, made a reference to his plans to develop Arm's business for several years ahead during his recent speech, but he did not mention anything about an IPO in his speech.However, this can be explained by a change in the structure of Arm's upcoming offering.If SoftBank retains a large block of shares, it will still be able to significantly influence the business of the British company.
Morgan Stanley analysts think that Intel underestimates the difficulties of contract business development
The speech of Intel CFO at the Bank of America conference has provoked the decrease in the company shares price, because David Zinsner had to admit that the market conditions at the moment were worse than the expectations of the company management.The pessimism was added by analysts at Morgan Stanley, who are not quite sure about the success of Intel's venture into the contract market.Image source: IntelThe processor giant intends to become a major contract manufacturer of semiconductor components in the next few years, offering customers no less advanced lithography than it will be used for its own needs.At any rate, the facilities under construction in Ohio will have mastered the production of chips using Intel 18A technology by 2025, and it will be offered to the company's customers at the same time.In fact, preliminary agreements have already been reached with some of the defense customers.Developing the contract business to a competitive level will require enormous material costs, and Morgan Stanley experts believe that Intel management underestimates the scale of difficulties that the company will have to face on the chosen path.All of this, of course, does not rule out the success of this business idea, but it may require a much larger investment than Intel currently expects.All these considerations have already led to the fact that the company's share price fell to a 52-week low ($39.18), and Morgan Stanley experts set the rate benchmark at $46 with a recommendation to sell Intel shares.
Last quarter SoftBank's attempt to sell British processor architecture developer Arm to NVIDIA failed, after which the assets decided to return to the stock market, but not British, but American.The head of Qualcomm Cristiano Amon (Cristiano Amon) spoke in favor of the idea to buy out Arm by a consortium of strategic investors, and in this respect, an ally of Qualcomm could become Intel.Image source: CTIA Everything Works Recall that the CEO of the latter, Patrick Gelsinger (Patrick Gelsinger), previously expressed a willingness to invest in Arm assets.So far Qualcomm does not expect to form an alliance with Intel, but in general Cristiano Amon believes that the buyout of Arm assets by a group of investors would better serve the interests of the industry.At the very least, it would preserve the balance of interests that would have been broken if the deal with NVIDIA had been consummated.As you know, Qualcomm opposed the Arm and NVIDIA deal.According to Amon, \"several companies should be involved in the deal, so that Arm could eventually maintain independence.\"Until 2016, Arm shares were traded on the London and New York stock exchanges, but now SoftBank aims to return them only to the U.S.stock exchange.This causes discontent of some British politicians, who consider Arm a part of the national technological patrimony.However, so far the attempts of the British authorities to influence the situation have not brought any results, but only contributed to the disruption of the deal with NVIDIA.As the leadership of Qualcomm, Arm managed to achieve success at the expense of collective investment in the ecosystem of the same name.Arm's independence, according to Amon, was critical to the success of its namesake architecture.Now everything is moving towards Arm platforms, as the head of Qualcomm thinks, so investments in the company's assets should justify themselves and contribute to its further development.So far Cristiano Amon did not discuss with SoftBank the possibility of buying the Arm assets, because the management of the Japanese corporation was focused on solving problems with the rebellious head of the Chinese Arm division.Whether such a conversation will take place in the near future is not specified.
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