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SoftBank will try to buy off rebellious director Arm China
In early June, British developer Arm fired Allen Wu, head of the Arm China joint venture, but he refused to leave his post, hired his own security and banned representatives of the parent company or the new director from entering the office. As it became known, now the main investor in the person of SoftBank is trying to buy off the rebellious director of the Chinese arm of Arm.
Image source: Financial Times
The Financial Times announces that Eric Chen, head of the Chinese office of the Japanese corporation, has been authorized to negotiate on behalf of SoftBank. Allen Wu is expected to consider leaving Arm China as a result of compensation ranging from $ 100 million to $ 200 million. The rebellious director of Arm China, according to the Japanese side, had almost agreed and was ready to leave office by the end of September.
As always, additional nuances intervened in the negotiation process. Allen Wu currently controls about 16.6% of Arm China through the four companies that are the shareholders of this joint venture. According to the original source, he hints that the value of Arm China’s assets since its founding in 20221 has grown fivefold to $ 7.5 billion. It is easy to determine that 16.6% of this amount is about $ 1.2 billion, so the amount of compensation Allen Wu can easily dispute. True, it is not yet completely clear whether he will be able to retain his stake in Arm China as a result of a secret deal with SoftBank.
For the Japanese corporation, resolving contradictions within the Chinese arm of Arm is an important condition for approving a deal with NVIDIA, in which a much larger amount ($ 40 billion) is at stake. There is no doubt that the rebellious leader of Arm China in such a situation can safely bargain with Japanese investors, demanding more and more favorable conditions for himself. Attempts to put pressure on him through the authorities of Beijing and Shanghai were not crowned with success, since in the latter case, Allen Wu found patrons at the municipal level.