Recently, Nvidia’s announcement that it has given up on acquiring UK-based chip designer Arm has gained a wide place in the technology world. After these developments, Arm’s parent company, Japanese SoftBank, said that it plans to take the chip designer to the public, but new developments seem to make this situation difficult.
Troubles with Arm China continue
Softbank announced that it would offer Arm to the public after the termination of the purchase agreement with Nvidia, but the problems with Arm China prevent this from happening.
The Japanese conglomerate sold more than half of Arm China to a local consortium in 2018. Softbank wants Allen Wu, head of its China division, to leave the company since June 2020. In a vote, it was decided by 7 to 1 votes to remove Wu from the leadership of the company, which was also accepted by the Arm China board of directors, but Wu continued to control Arm China by filing two different lawsuits against the company.
Refusing to withdraw and retaining control of the venture due to legal rights, Wu filed his third lawsuit against Arm China in recent months. The lawsuit is cited as another hurdle that needs to be resolved before Arm goes public.
Between Arm and Arm China The tension has been going on for a while and it is stated that another reason behind the failure of the IPO is that Arm China’s revenues cannot be verified due to the dispute.
Tudor Brow, who founded Arm in 1990 and has been a director of the company for 22 years: “This needs to be resolved. You can’t go public when 20 percent of the company’s revenues are not auditable.” said.
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