- During recent customer talks, SoftBank's (OTCPK:SFTBF,OTCPK:SFTBY) Arm reportedly pressed for price increases that could raise overall license costs by up to four times for some customers.
- License costs can total millions of dollars, and Reuters sources say the threat of hikes has customers considering non-Arm alternatives.
- Arm's license revenue grew 6% Y/Y to $582M in the most recent fiscal year. Royalties fell 2% to $1.08B in the same period. The company has invested heavily in new chip technology.
- Last week, Arm spun off two IoT businesses to SoftBank to focus on the chip business.
- Earlier this week, WSJ sources said SoftBank is considering its Arm options, including a full or partial sale or public offering.