NVIDIA's $40 Billion Deal to Acquire Arm Holdings Could Be in Jeopardy. You Won't Believe Why.
A battle between Arm Holdings and its former head in China could derail the $40 billion deal between NVIDIA (NASDAQ: NVDA) and SoftBank (OTC: SFTBY), according to a report in the Financial Times. Rising tensions between the former chief executive of Arm China, Allen Wu -- who controls a 17% stake in the company -- and the board of directors have spiraled out of control, putting the deal in doubt.
Earlier this year, the board of directors of Arm China voted to remove Wu, accusing him of numerous conflicts of interest with regard to his investment fund Alphatecture. Wu has since seized control of the company's operations in China and continues to act as it's legal representative, as well as managing the segment's day-to-day operations.
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