There’s some proper, and surprisingly concise deal analysis over there:
While growth has come from the IoT, ARM’s resurgence in recent years – and Intel’s opposite trajectory – have been the result of the London company’s dominance in mobile devices. (In 2015, “45% of the ARM-based chips went into mobile devices.”) The so-called Wintel monopoly carried both of those parties to valuations that ARM never approached, but as mobile steadily eroded PC spend ARM’s low power designs found success on both of the most successful mobile platforms. Both Apple’s iOS devices and Android’s array of hardware are either exclusively or nearly so ARM-based.
Check out the rest!
Meanwhile, from John Abbott at 451 Research:
- ARM “generated less than $1.5bn in revenue last year and has only 3,300 employee”
- “SoftBank will pay 20.9x trailing revenue for ARM. That’s the first time any company has cracked the 20x mark in a $1bn-plus chip acquisition.”
- ARM “holds a 40% share in consumer goods, 30% in embedded intelligence, 15% in network infrastructure and 10% in automotive.”
- “Revenue reached $1.49bn in 2015, up 15% from the previous year, with a net profit of $360.7m.”
- Read more for his overall sentiment, which is basically: SoftBanks’ money and reach can fuel faster marketshare growth in these convert all the toasters to IoT grills times. checks out.