Masayoshi Son explains why Softbank just bought ARM

Masayoshi Son pictured today in London as he gives the lowdown on the deal to acquire ARM. Photo credit: @ollydenton.

Softbank’s Masayoshi Son this afternoon explained why the Japanese telco giant just coughed up US$31.4 billion in cash to acquire the UK-based chip designer ARM.

“I buy at the beginning of paradigm shifts. We are at that moment now with Internet-of-things,” said billionaire Son at a press conference in London.

ARM, which designs processor architectures such as those seen in iPhones, will bring Son closer to the everything-connected-to-the-web future that he outlined last summer.

“Each individual, on average, will have more than 1,000 devices that are connected to the internet by 2040,” he had told the audience at SoftBank World last July. “There will be no devices that aren’t connected.”

All those things, whether it’s smart fridges or lightbulbs or socks, will require low-power processors. That’s where ARM comes in.

Son’s ARM muscles could also prove useful with Sprint, the troubled US telco that Softbank acquired in 2013. But Son didn’t outline how the pricey acquisition could help save the failing network.

Masayoshi Son says he wouldn't have bought ARM if he wasn't now confident he can turn around Sprint

— Nic Fildes (@NicFildes) July 18, 2016

Costing an arm and a leg, even after Brexit

In a rapid-fire speech, Son said that the deal was done in just two weeks – all of which took place after the UK vote to exit the European Union. The tech boss denied that Brexit was a factor – or that the plummeting British pound meant the Japanese company got a bargain.

Instead, ARM, which reports in US dollars, saw a rise in its share price after British voters narrowly opted for Brexit.

“I say this is the time to invest with a strong commitment and belief in the future of the UK,” added Son.