Apple considering ARM acquisition?

Apple Online Store“Talk of mega-takeover bids for a pair of FTSE 100 companies had investors excited today,” Rosamund Urwin reports for The Evening Standard. “The City’s gossips were pushing two tales: that Apple is considering a bid for ARM Holdings and that Vale could make an offer for Xstrata.”

“Of the two yarns, most investors seemed to think an approach was more likely for ARM, the Cambridge-based technology company which was recently promoted to the top flight,” Urwin reports. “The chipmaker’s shares shot up 8.1p to 251.1p, topping the Footsie winners’ list, as more than five million shares changed hands by midday.”

“Apple is ARM’s biggest customer and speculation is that the iPad maker wants to take chip design in house,” Urwin reports. “‘A deal would make a lot of sense for Apple,’ said one trader. ‘That way, they could stop ARM’s technology from ending up in everyone else’s computers and gadgets.’ Traders reckon a bid would come in at around 400p a share, valuing ARM at more than £5.2 billion.”

Urwin reports, “The takeover speculation was fuelled by stellar second-quarter figures from Apple last night smashing Wall Street’s forecasts. This was good news for ARM even without a bid, because ARM pockets royalties from the sale of iPads.”

Full article here.

MacDailyNews Note: ARM was founded (as Advanced RISC Machines Ltd) as a joint venture between Acorn Computers, Apple Computer and VLSI Technology in 1990. Today, ARM processors are used in almost all modern mobile phones, handheld gaming devices, portable media players, GPS, and many other devices. ARM Holdings (ARMH) currently has a market cap of US$1.9 billion. Debt-free Apple currently has $41.7 billion in cash and short term investments on-hand.

[Thanks to MacDailyNews Reader “James W.” for the heads up.]

52 Comments

  1. I guess this ARM doesn’t have a Radius?

    Significant alumni of Radius

    Matt Carter (VP Manufacturing) Retired
    Alain Rossman (VP Marketing & Sales) Phone.com and OpenWave
    Kevin Perera (Designer) CKS and Pillar Data
    Steve Lemke (Engineer) Palm Computing
    Ed Colligan (Director, Marketing) US Robotics and Palm Computing
    Lisa Grenier (Sr. Lead Engineer) Sun Microsystems
    Dominique Goupil (VP, International Sales) FileMaker
    Andy Hertzfeld
    Burrell Smith
    Ron Marianetti
    Robert Jasman
    David Burnham
    Hage van Dijk

  2. No way, this rumor is rubbish. Apple won’t waste their money on an acquisition only to kill their sales to customers. Plus, that would really raise the antitrust hackles, justified or not. Apple is perfectly happy licensing ARM designs that they can modify for their special purpose.

  3. Buying ARM to cut off supply to competitors would not be as good a move as buying ARM to insure unlimited access to their latest, greatest (and custom) products at the best possible prices while continuing to sell to competitors at a profit.

  4. If Apple wants to buy Arm I hope they do a better job of locking the deal down and acting-than they did in the AdMob attempt.

    I wouldn’t want to see Google buy Arm.

  5. That is *** STUPID ***:

    Apple sell off ARM’s shares through years — and it had enough money to buy it then, and Jobs was already projecting iPhone.

    Nothing changed in ARM’s status or Jobs concepts.

    So why all of sudden he would want to buy ARM now?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.