{"id":5730,"date":"2016-07-18T18:28:48","date_gmt":"2016-07-18T12:58:48","guid":{"rendered":"http:\/\/www.ishwark6.sg-host.com\/?p=5730"},"modified":"2016-07-18T18:29:20","modified_gmt":"2016-07-18T12:59:20","slug":"u-k-chip-giant-arm-set-acquired-softbank-31-billion","status":"publish","type":"post","link":"https:\/\/startup-buzz.com\/?p=5730","title":{"rendered":"U.K. Chip Giant Arm Set To Be Acquired By Softbank For $31 Billion"},"content":{"rendered":"
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First major deal for U.K. Company Post Brexit<\/em><\/p>\n<\/blockquote>\n

One of the most successful technology companies in the world, ARM, is being acquired by SoftBank. The U.K.-based company is into chip design, and has many renowned clients including Apple and Samsung.. Having sold around 600 billion chips till date, and with licensed agreements with 300 tech companies around the world, ARM is now being taken over by SoftBank.<\/p>\n

Is ARM a casualty of Brexit? <\/strong><\/p>\n

The news comes curiously soon after Brexit. The U.K.-based companies are reeling under its effect and many have decided to relocate their base of operations. The definite question that everyone is asking is, \u201cIs ARM the first major casualty of Brexit?\u201d As per the reports, SoftBank has offered 43% premium on the last week\u2019s closing price of ARM\u2019s stock. In other words, ARM could be acquired for $31 billion, which makes it the biggest acquisition of a Europe-based firm in history. Simon Segars, CEO of ARM, says that the $31 billion deal from SoftBank is a good news in a Brexit-affected economy.<\/p>\n

But is the price really worth it?<\/strong><\/p>\n

Since Britain\u2019s decision to leave EU, the U.K. pound has dropped 10% against many important currencies. Some see it as an unavoidable effect of Brexit. In comparison to Japan, the Pound is 30% down. This has sparked a discussion whether the offered amount money by Tokyo-based SoftBank, despite being quite handsome, undermines the real value of ARM.<\/p>\n

Last month, speculations were ripe that Nikesh Arora\u2019s exit from SoftBank will be a prominent blow to the organization. But with this announcement, SoftBank has proved that things are back to normal.<\/p>\n

Takeaways:<\/strong><\/p>\n