[pkcsecurity]

Comment on the timing of this IPO: for a company to IPO "unfavorably" compared to previous valuations likely means ARM's hand was forced by timing considerations, unless they are running out of cash, which I don't think is the case.

My interpretation of this is that their investors suspect that whatever boost ARM is getting from AI optimism will likely peak soon, so the timing has to be now.

I know that's not fully rational because they're mostly unrelated, but certainly the optimism because of AI has to be good for them. Curious to see if this "signal" plays out - investors tend to be pretty savvy about timing.

[jsnell]

> I know that's not fully rational because they're mostly unrelated, but certainly the optimism because of AI has to be good for them. Curious to see if this "signal" plays out - investors tend to be pretty savvy about timing.

The "investors" are SoftBank; they've been pretty much the stupidest money in the world for years.

While it's possible that they're being more savvy about the timing of this sale than about their investment decisions, I don't know that it should be the default assumption.

[dilyevsky]

Arm itself may not be running out of cash but their major investor might be looking to cash out

[lotsofpulp]

ARM was wholly owned by SoftBank. They did not have their own cash, it was all Softbank’s cash. And obviously SoftBank selling ARM means SoftBank wants to cash out, for whatever reason.

[pokerhobo]

SoftBank made a ton of stupid investments like WeWork and was bleeding money. They needed to cash out their ARM investment to recoup major losses.

[monocasa]

In fact, SoftBank is known for being the one of the stupidest big investors there is. They got lucky being an early investor in Alibaba, but have managed to piss most of that money away on getting left holding the bag on the peak.

[zzbn00]

There is one timing-related disclosure in the F-1: The Kronos guarantee