Japan's SoftBank to buy ARM holdings

I was also quite depressed at this news.

I always found it quite shocking and sad also that so few people in this country and others knew how Acorn--> ARM had changed the technological world and now it's another amazing British company owned by a foreign company.

Herman Hauser on the BBC saying the same.
 
dowie said:
No, all lies, foreigners won't invest here post-brexit... oh wait



Apple still could... the deal isn't done yet.
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We haven't left yet, and the pound tanked. Money will move between different sectors of the economy in interim, sure. But the average, looking at both of our main indices, remains subdued and rather flat. Furthermore, an IP-oriented businesses, operating on a licencing model, is easy to uproot and relocate. The best tech brains remain global and will follow the cash. Hence it's wise to reserve judgement on any such investment flowing in on a currency drop. I thought you were the prime advocate of wait-and-see, dowie, what happened?
 
Tunney said:
This isn't really the kind of investment we need: a foreign company buying up a successful UK business and funneling the profits abroad.
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Eh? So you'd prefer foreign investment where the investors lose money? That isn't very sustainable...
 
datalol-jack said:
Furthermore, an IP-oriented businesses, operating on a licencing model, is easy to uproot and relocate.
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It really isn't, why do you think companies are still setting up in silicon valley and paying a fortune for the privilege for example?

I thought you were the prime advocate of wait-and-see, dowie, what happened?
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I am... this is just one news story - but the idea of foreign investment being unattractive in a post brexit UK doesn't seem to be supported in this instance
 
dowie said:
Eh? So you'd prefer foreign investment where the investors lose money? That isn't very sustainable...
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No, I'd prefer that Softbank set up their own R&D centre in the UK rather than sucking up the profits from one of our shining lights.
 
dowie said:
...
I am... this is just one news story - but the idea of foreign investment being unattractive in a post brexit UK doesn't seem to be supported in this instance
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Could you outline the benefits, please? I'm clearly missing something.

Toyota, for example, saying that they'll expand production in Derby would be hugely positive foreign investment.

This is simply a foreign company purchasing a British company, whose position was weakened along with the strength of the £.
 
I think it's a worry, weak manufacturing sector we need to try and regrow and we continue to sell off any half decent business.
 
I love how according to the doom-and-gloom remainers, no foreign companies would want to invest in the UK post-Brexit. So when a foreign company does invest in the UK it's all "this is even worse!". It's funny isn't it? The same people who continually argued in favour of big multi-nationals taking over British businesses in the last few years are suddenly dead set against them. Did someone hear an echo?
 
No1newts said:
I think it's a worry, weak manufacturing sector we need to try and regrow and we continue to sell off any half decent business.
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ARM aren't a manufacturing business.

Tunney said:
No, I'd prefer that Softbank set up their own R&D centre in the UK rather than sucking up the profits from one of our shining lights.
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As if ARM profits before this all trickled down nicely in the UK...
 
scorza said:
I love how according to the doom-and-gloom remainers, no foreign companies would want to invest in the UK post-Brexit. So when a foreign company does invest in the UK it's all "this is even worse!". It's funny isn't it? The same people who continually argued in favour of big multi-nationals taking over British businesses in the last few years are suddenly dead set against them. Did someone hear an echo?
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Surely the type of investment we want is for a foreign company to come over and invest money in a new business, rather than simply buying an existing business?
 
Tunney said:
No, I'd prefer that Softbank set up their own R&D centre in the UK rather than sucking up the profits from one of our shining lights.
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Do you currently directly benefit from the profits of ARM? If so you'll have a vote on whether you'd like to accept an offer valuing it at 40% higher.

If not then what difference does it make to you whether a company owned by a mixture of international investors, pension funds, individual shareholders gets sold at a higher price than it is currently trading at (or has ever traded at) and the profits go to another international investor? They're still not going to you regardless.
 
Bonjour said:
Could you outline the benefits, please? I'm clearly missing something.

Toyota, for example, saying that they'll expand production in Derby would be hugely positive foreign investment.

This is simply a foreign company purchasing a British company, whose position was weakened along with the strength of the £.
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A foreign company who've stated they'll increase the workforce...

Though the point was that foreign investment was supposed to be deterred by brexit though in this case it doesn't seem to be.
 
dowie said:
A foreign company who've stated they'll increase the workforce...

Though the point was that foreign investment was supposed to be deterred by brexit though in this case it doesn't seem to be.
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Can you see the difference between this and, for example, a foreign company expanding their operations or opening up a new business in the UK?
 
Hades said:
Surely the type of investment we want is for a foreign company to come over and invest money in a new business, rather than simply buying an existing business?
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Don't see what's wrong with buying an existing business and growing it, which is what SoftBank are saying they're going to do. Whatever else, there's an extra £25bn cash coming to ARM shareholders, most of which I imagine will be invested elsewhere in the UK.
 
Bonjour said:
Can you see the difference between this and, for example, a foreign company expanding their operations or opening up a new business in the UK?
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yes, how is that relevant?

Although in this instance they will be expanding their operations going forwards...
 
dowie said:
Do you currently directly benefit from the profits of ARM? If so you'll have a vote on whether you'd like to accept an offer valuing it at 40% higher.
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I do but not enough to make a difference.

If not then what difference does it make to you whether a company owned by a mixture of international investors, pension funds, individual shareholders gets sold at a higher price than it is currently trading at (or has ever traded at) and the profits go to another international investor? They're still not going to you regardless.
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Because the UK is going to lose a lot of tax revenue, just like it did with Cadbury.
 
Tunney said:
I'm not sure it was. They're a technology licensing firm. Their overheads are low but they're never going to generate Apple/Microsoft-level profits.
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They design micro processors and let manufacturers in the Far East fabricate them, what physical goods do Microsoft produce other than the XBox?

Once ARM starts designing server-class CPU's and take on Intel then they'll really be motoring along, Intel is worth $165bn...
 
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