Editing Acorn Computers (section)

====Acquisition and asset disposal====
Ultimately, the widely anticipated issues around releasing Acorn's 24% shareholding in ARM, with a need for "minimising the massive tax burden posed by disposing the holding",<ref name="acornuser199906_artistic">{{ cite magazine | url=https://archive.org/details/AcornUser208-Jun99/page/n5/mode/1up | title=Artistic Licence | magazine=Acorn User | date=June 1999 | access-date=18 March 2022 | pages=6 }}</ref> were resolved through "creative accounting courtesy of [[Morgan Stanley]]", with an offshore subsidiary of the bank acquiring Acorn, releasing the {{nowrap|£300 million}} shareholding "using the purchase as a tax loss and swapping Acorn investors' shares for ARM shares", and with the bank retaining an estimated {{nowrap|£40 million}} shareholding in ARM as a consequence.<ref name="acornuser199907_acornplc">{{ cite magazine | url=https://archive.org/details/AcornUser209-Jul99/page/n6/mode/1up | title=Acorn PLC | magazine=Acorn User | date=July 1999 | access-date=18 March 2022 | pages=7 }}</ref> As part of the process leading to the acquisition of Acorn by the Morgan Stanley subsidiary, MSDW Investment Holdings Limited, with the intention to "minimise the liabilities" of the group through the disposal of assets, Pace Micro Technology agreed to acquire Acorn's set-top box division for approximately £200,000,<ref name="ac-prelim-results-for-1998" /> also obtaining Acorn's rights and obligations with regard to [[RISC OS]].<ref name="register19990429">{{ cite news | url=https://www.theregister.com/1999/04/29/arm_denies_role_in_acorn/ | title=ARM denies role in Acorn dismemberment | work=[[The Register]] | date=24 April 1999 | access-date=31 January 2021 | last1=Cullen | first1=Drew }}</ref>

In conjunction with the acquisition of Acorn, an offer was extended to a company "owned by Stan Boland and certain senior management to purchase&nbsp;... the silicon and software design activity" for approximately £1&nbsp;million. This distinct company, known as "New Jam Inc" or "NewJam Inc", already founded in April 1999,<ref name="element14_accounts1999">{{ cite web | url=https://find-and-update.company-information.service.gov.uk/company/FC022173/filing-history/MTIzMDU0NjIyYWRpcXprY3g/document?format=pdf&download=0 | title=Element 14 Inc. | website=Companies House | access-date=23 December 2024 | pages=F-7 }}</ref> eventually acquired these assets for £620,539,<ref name="cabot2_accounts1998">{{ cite web | url=https://find-and-update.company-information.service.gov.uk/company/01403810/filing-history/OTgxODAzMjZhZGlxemtjeA/document?format=pdf&download=0 | title=Financial Statements for the Year Ended 31 December 1998 | website=Companies House | access-date=25 July 2021 }}</ref>{{rp|pages=24}} and effectively became the independent Element 14 venture,<ref name="ac-prelim-results-for-1998" /> acquiring the name from the former Acorn Computers Limited in October 1999.<ref name="element14_accounts1999"/> Acorn Computers then became known as '''Cabot 2 Limited'''.<ref name="cabot2">{{ cite web | url=https://find-and-update.company-information.service.gov.uk/company/01403810 | title=Cabot 2 Limited | website=Companies House | access-date=25 July 2021 }}</ref> A subsequent report put the sale price of this division of Acorn at £1.5&nbsp;million, offering the prescient observation that this new business would itself be acquired for "several million pounds" by an established company in the industry.<ref name="register19990429" /> This anticipated acquisition, involving [[Broadcom]], occurred the following year.<ref name="register20001014">{{ cite news | url=https://www.theregister.com/2000/10/14/broadcom_eats_element/ | title=Broadcom eats Element 14 | work=The Register | date=14 October 2000 | access-date=31 January 2021 | last1=Cullen | first1=Drew }}</ref>