ARM has reversed its plans to transfer its IoT platform Pelion and Treasure Data component to Softbank. The two components will continue independently under the management of ARM.
ARM announced in July that it would transfer its IoT divisions to its parent company SoftBank in September. At the time, Simon Segars, ARM-CEO, said that the move would allow the company to fully focus on designing new chips. Now the company is reversing that decision.
“After further diligence, we have determined that both the IoT platform and data can realize the same benefits as independent operating businesses, each with their own P&L (profit and loss), under the ARM Limited umbrella with less operational disruption” ARM says in a statement. Now that these components will continue independently under ARM, the company can still focus on designing chips.
The IoT platform Pelion and Treasure Data both suffered losses in 2019.
The recent developments surrounding Softbank and ARM may also have played a role. The parent company is currently in talks for a partial or full sale of ARM. SoftBank bought the chip manufacturer for 32 billion dollars in 2016. Nvidia is one of the interested parties. According to Bloomberg, the talks between Softbank and Nvidia are at an advanced stage.