Chip designer Arm backtracked on a plan to transfer its IoT operations to parent SoftBank Group, opting to hold on to the businesses but separate their operations and accounting from its core semiconductor business, The Wall Street Journal reported.
A representative told the newspaper Arm believes it can deliver the same benefits of a spinoff while keeping the operations in-house.
In early July, the UK-based company detailed plans to offload its IoT Platform and Treasure Data businesses to SoftBank to focus on its core chip IP business.
Previously, SoftBank Group said it was considering a sale of some or all of its stake in Arm, which it acquired for $32 billion in 2016. The Japanese company was also exploring listing Arm as part of a broader asset sale strategy to help reduce debt.
While the IoT sector hasn’t lived up to the heady expectations, the long-term growth trends are still attractive, which means keeping the division could make Arm more valuable.Subscribe to our daily newsletter Back