The total UK surrender of ARM.

In 'Gambling Man', Lionel Barber offers a compelling account of SoftBank’s 2016 acquisition of ARM Holdings, painting SoftBank’s CEO, Masayoshi Son, as a bold yet fortunate opportunist—a “man in the arena” seizing a pivotal moment. Barber’s analysis underscores how Son capitalized on the UK’s vulnerabilities to acquire a crown jewel of its tech sector.

The £24.3 billion ($32 billion) takeover exposed the short-sightedness of UK institutional investors and the complacency of Conservative policymakers, who failed to safeguard ARM, a global leader in chip design.

Founded in 1990 as a spin-off from Acorn Computers, ARM had strategically positioned itself at the heart of the semiconductor industry, powering most smartphones and embedded systems with its energy-efficient CPU cores. Its early investors included Apple, highlighting its prestige. The acquisition, completed at a 43% premium, was a stark reminder of the UK’s inability to protect its strategic assets post-Brexit, with SoftBank’s move signaling both opportunity and a lack of domestic resolve.

The positive news spin at the time:

In July 2016, SoftBank Group Corp., a Japanese multinational, acquired ARM Holdings plc, a British semiconductor and software design company, for approximately £24.3 billion ($32 billion) in cash. The deal, one of the largest acquisitions of a European tech firm, was completed on September 5, 2016, after approval by ARM's shareholders and the English court. SoftBank paid £17 per share, a 43% premium over ARM’s closing price, and funded the acquisition with existing cash and a loan from Mizuho Bank. ARM, based in Cambridge, UK, designs energy-efficient CPU cores used in most smartphones and embedded systems. SoftBank aimed to leverage ARM’s technology for the Internet of Things (IoT), committing to double ARM’s UK workforce over five years while maintaining its independence, management, and Cambridge headquarters. The acquisition followed the UK’s Brexit referendum, with SoftBank’s investment seen as a vote of confidence in the UK tech sector.