| From the article: >"Arm China, meanwhile, is contemplating a float of its own. The rogue Arm outpost, which is led by CEO Allen Wu and majority owned by Chinese entities, has become something of a problem for Arm because Wu was fired but has managed to retain his position." Is this not a huge meatball that ARM has hanging out here? Further from a link in the linked article[1][2] >"Following the investigation of Wu by Arm and Hopu, the Arm China board voted 7-1 to dismiss Wu.
Given Wu’s refusal to vacate his role, Arm is growing anxious over the security of Arm China’s intellectual property, assets and finances, according to the people with knowledge of the matter." How would any investor ever feel confident in investing in ARM unless this is resolved? Even if it is resolved what are the assurances that the IP is actually safe? This sounds like a debacle. Is this something that happened on Softbank's watch? [1] https://www.scmp.com/tech/big-tech/article/3168443/arm-china... [2] https://www.scmp.com/tech/big-tech/article/3089901/softbank-... |
Yes, but mostly no. Most of ARM's market cap is tied up in IP; much of which is publicly available knowledge anyway. Wu stole said IP, but he has very few markets in which he's legally allowed to sell. It would be like someone setting up another Disney in China. Okay, so you can sell Mickey Mouse branded clothing in China, but you're definitely not going to be able to sell in any modern market.
ARM got off light. Millions of Western businesses have been destroyed this way.
It should be a stark warning for companies setting up shop in China: they will steal your technology, your IP, your facilities and assets, your trade secrets, your branding and trademarks, and all your equity. The government permits and encourages this. It's only a matter of time.