[RUMOR] Apple Considering $8 Billion Acquisition of ARM

[jefXfree]

ARM Holdings, the company that creates the processors for most of the world’s mobile phones — including the iPhone and iPad — is now the center of major acquisition rumors. The potential buyer: none other than Apple.

According to the London Evening Standard, there is huge chatter in London’s financial scene that ARM Holdings could be acquired by the technology giant for around $8 billion, or 5.2 billion pounds.

Let’s be very clear: This is very much in the rumors and speculation stage. However, shares of ARM Holdings shot up by over 8% during trading today, mostly due to the rumors. The deal is completely doable on Apple’s end — it has over $40 billion in cash reserves.

An acquisition would do two things for Apple. First, it would bring more chip technology in-house, allowing the company greater control over the development of mobile processors. Second, it would potentially give Apple the ability to deny competitors access to ARM’s technology, including Android phones.

If Apple does indeed acquire ARM, it would completely change the game and potentially force mobile phone manufacturers to use weaker-performing processors in their phones. That is, of course, if these rumors are true and if Apple can get such a deal past not only American regulators, but stricter European regulators as well. There is also a difference between ARM products and ARM-licensed products — revoking or limiting current licensing deals would be one hell of a mess.

 

[DaMexiRican]

Lame if it goes through.

 

[jefXfree]

ARM CEO dampens talk of Apple acquisition, says 'nobody has to buy the company'

Apple buying ARM may not seem like the likeliest of rumors, but talk of an acquisition has been enough to send ARM shares to their highest point since 2002, which has now prompted ARM CEO Warren East to comment on the matter. While he's obviously pleased to see his company's stock doing so well, East says that "common sense tells us that our standard business model is an excellent way for technology companies to gain access to our technology," adding that, "nobody has to buy the company." Of course, saying that nobody has to buy the company doesn't exactly rule out the possibility of an acquisition -- Apple or otherwise -- and, last we checked, ARM's stock was still edging up higher into positive territory, so dampening talk doesn't seem to be dampening investors' interest just yet.

 

[Horhay]

I don't see how Apple buying this company would benefit the consumer. Anything purchased by another maker from ARM once it (if) becomes Apples will come at a premium that will eventually make it down the customer. We'll end up paying the fees.

 

[Blu_Death]

yeah, if apple buys it, this is gonna definitely hurt consumers... apple as the exclusive producer of anything is an awful idea

 

[xtop]

this would be terrible for everyone if it happened