Why did Softbank pay so much for ARM? Because it’s worth it

Why did Softbank pay so much for ARM? Because it’s worth it
by Gus Richard on 07-24-2016 at 7:00 am

Softbank’s acquisition of ARM Holdings was not only unexpected, but also the valuation was astonishingly high. Softbank is acquiring ARM for $32.2B or 23x CY15 revenue and 46x CY16 earnings. This was a 46% premium to the prior day’s closing price before the announcement of the acquisition. The questions to ask are: Why is Softbank… Read More