SoftBank chief in Seoul tapping M&A deals and alliance with Samsung Elec and others

Samsung Electronics Co. Vice Chairman Jay Y. Lee (left) and SoftBank Group Corp. CEO Masayoshi Son walk into dinner in Seoul on July 4, 2019. [Photo by MK DB]

Masayoshi Son, founder and chief of Japan’s SoftBank Group Corp. in Seoul since Saturday, is said to be discussing various partnerships with South Korean businesses including tech giant Samsung Electronics Co. over potential alliance in its sale of British chip design house Arm Holdings Ltd.

According to multiple sources from the industry sector on Monday, Samsung Electronics Vice Chairman Jay Y. Lee is expected to meet with Son and discuss various cooperative relationship issues. The two could have already met, sources noted, although no official confirmation by Samsung Electronics.

Lee and Son are said to close, regularly discussing business affairs over the phone during pandemic environment. The last time the two leaders officially met was in 2019. but they have kept in touch.

SoftBank has officially confirmed it would discuss “strategic alliance” with Samsung Electronics over Arm.

Lee and Son are expected to primarily discuss Arm affair during the meeting. Son is known to be tapping strategic investors, including Samsung Electronics, for pre-IPO scheme over Arm after a deal to sell 75 percent stake in British chip company to Nvidia failed to go through in the face of regulatory challenges.

Since Samsung Electronics cannot go after the controlling stake Arm alone due to monopoly issues, it would likely take up some stake in pre-IPO equity sale.

An equity investment would enable Samsung Electronics to establish technical partnership with Arm.

Other issues Lee and Son could discuss include possible merger and acquisition by Samsung Electronics of one of companies SoftBank has invested through two of its Vision Funds. The two business tycoons could also discuss measures to launch Vision Fund 3.

SoftBank has been shedding assets as it struggles with earnings due to plunges in venture stocks.

Hyundai Motor Group acquired a controlling 80 percent stake in U.S.-based robotics firm Boston Dynamics from SoftBank in 2020 for about 1 trillion won ($698 million).

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