The 58 year old emperor is desperately looking for a heir, he believes that his time is running out. He adopts a boy as prince and announces him as his heir apparent.
One morning, the King was on his morning walk and he stumbles upon a strange plant, which he had never seen. He does not know that, this is "Shilajeet" and tries to taste it. He finds it palatable and eats a mouthful.
Suddenly he is full of vigour and energy his steps are just bouncing off the ground. He could not believe this sudden transformation in himself and is very happy.
He starts singing this:
Returning to the palace the first thing he does is to throw out his heir apparent from the palace and announces that he is going to live for another 100 years and would bear his own son. He has a lot of time for it now. All the thanks to "Shilajeet".
Does this story sounds familiar?
Not in long distance, Mr.Nikesh Arora was almost as the son of Mr.Masayoshi and suddenly in one day, he was out?
Everyone believed the above story and carried on...
But the truth with dots is that, they can be connected only backwards, so they cannot be exactly blamed for that.
Here I present the dots for you:
A company in $100 billion debt.
Investors not happy with the way company is being run.
Company's de-facto second-in-command engulfed in couple of legal suits from investors who did not like him.
Impending opportunity of a major multi-billion big investment, which could again has the potential of windfall gains, like the stake in Alibaba.
Very high profile pit-falls in recent past for the company in terms of its investment in India.
The money for the major multi-billion acquisition to be raised by mix of cash and debt.
Would Mr.Masayoshi would have managed to pull off the ARM acquisition with Mr.Nikesh Arora still on board?
Connect the dots yourself, and you would find the answer yourself. It is an emphatic NO.
Investors were already unhappy with $100 billion debt, the high compensation of Mr.Arora and then couple of lawsuits on Mr.Arora and as well as the company.
Would the investors in the company would have agreed for another $32 billion acquisition?
Would raising money for this $32 billion acqusition would have been possible, with Mr.Arora still on board?
Would ARM agree for this acquisition with lawsuits still hanging on the neck of Softbank? What if they agree for Softbank and then Softbank is not able to raise money?
What if the investors believe that ARM acquisition is another of Mr.Nikesh Arora's investment?
Again, connect the dots and you shall find that, answer to the above questions is , NO.
For Mr.Masayoshi, there was only one option, to move out Mr.Nikesh Arora.
Wipe out the stories of pit-falls and settle the impending legal suits, give the investors something, they have been asking and in bargain push through the ARM acquisition.
And that is why he created this story for all of us to believe, which has been outlined at the start of the post.
I do not think that there was any option left for Mr.Nikesh Arora.He just wanted his name to be cleared and that is why the sudden meeting of board, absolving Mr.Nikesh of any wrongdoings.
For Mr.Masayoshi, it was either ARM or Nikesh.
He chose the former...
ARM is the reason for Mr.Nikesh Arora being moved out of Softbank.
image: wikimedia commons