SoftBank-Owned Arm Faces China Roadblock After Nvidia

  • SoftBank Group Corp's SFTBY SFTBF U.K. chip designer Arm Ltd's escalating battle at its renegade China unit has jeopardized its IPO ambitions, the Financial Times reports.
  • The joint venture head, Allen Wu, has launched a third legal case against Arm China through one of his shareholder companies. Wu's latest case aims to get reappointed to the Arm China board. 
  • It marks Wu's latest effort to maintain control over the crucial business unit and risks disrupting SoftBank chief Masayoshi Son's U.S. listing ambitions for Arm. 
  • Arm China has historically contributed around a fifth of Arm's overall sales.  
  • Arm's planned merger with NVIDIA Corp NVDA collapsed this week amid political and regulatory resistance in the U.S., U.K., and Europe. 
  • Arm's struggle to regain control of its J.V. in China has dragged on for almost two years. 
  • Arm warned in January that it was unable to verify Arm China's revenues due to the dispute. 
  • A lack of clarity over a critical business unit's financials and legal battles in a notoriously hostile chip market potentially makes it difficult to value Arm's business. 
  • Price Action: NVDA shares traded lower by 3.3% at $258.24 in the premarket on the last check Friday. SFTBY shares closed lower by 5.61% at $23.37 on Thursday.
Market News and Data brought to you by Benzinga APIs
Posted In: NewsIPOsTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!