Treasure Data
2018
$600M
Why
Under SoftBank ownership Arm acquired Treasure Data, a cloud-based enterprise customer data platform, in a deal Bloomberg reported at about $600 million. The rationale was SoftBank's view of Arm as an end-to-end IoT company: Arm processors at the edge, Treasure Data collecting and analysing the resulting data in the cloud.
Impact
Treasure Data sat awkwardly next to a licensing business with no consumer or enterprise software channel of its own. It brought subscription software revenue but neither the customers nor the economics matched the rest of Arm, and investors questioned the price.
Outcome
Arm distributed Treasure Data to its shareholder in 2021 and reported it as a discontinued operation, alongside the Pelion IoT business. The two disposals produced net losses from discontinued operations of $127 million in fiscal 2022 and $156 million in fiscal 2021, and cleared the way for the pure IP story Arm took to the Nasdaq in 2023.