ARM sold to Japanese Softbank

Numerous media outlets are reporting the sale of chip designer ARM for £24bn to Japan’s Softbank. ARM being a very successful company in both economic and technical terms, this is huge news for the industry.

ARM stock quote

The company’s NASDAQ price went up by 40% in a step function

Sales and profits both look healthy for the Cambridge chip maker and a deal with Softbank, the company also invovled with Alibaba, will allow ARM to take an even stronger position in the IoT world. Some analysts claim ARM will now have to allay fears of market saturation, while others ask whether it was not sold too cheaply. Interestingly enough, the CEO Simon Gears claims that as much as 60% of ARM chips go into non-smartphone markets.

ARM itself does not make chips and makes money off of royalties paid by other tech giants, including Apple and Samsung.