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ARM stocks rise on resurging Apple takeover rumors

updated 10:35 am EDT, Thu June 10, 2010

Deal unlikely because of industry implications

ARM stocks have risen by as much as 32 percent in Thursday stock trading, apparently on the basis of resurgent rumors of an Apple buyout bid, says Reuters. Though Apple has not yet been reached for comment, a spokeswoman for ARM has denied the existence of any talks, and reiterated statements by CEO Warren East, saying that a takeover would not make any sense. A Panmure Gordon analyst suggests that investors are simply being bullish on ARM's prospects, given its technology's importance in current and forthcoming tablets, like the iPad.

The iPad's A4 processor is a modified ARM design, and in theory Apple could create even more specialized chips if it owned ARM's assets. ARM licenses out architecture rather than manufacturing it however, and combined with the customization already afforded to businesses, there may not be much incentive to spend the money needed to buy the company. There is also the possibility of legal concerns, as Apple would either have to keep licensing out processors or risk lawsuits and even antitrust complaints.

A modified version of the A4 is being used in the iPhone 4, which ships on June 24th.


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By Electronista Staff
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  1. Oneota

    Professional Poster

    Joined: May 2000

    -1

    Deja vu?

    Didn't Apple already own ARM once?

  1. shawnce

    Fresh-Faced Recruit

    Joined: Nov 2000

    +2

    Yeah Apple...

    Yeah Apple had a decently large holding in ARM a decade ago or so.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -1

    Re: Deja vu

    No, they never 'owned' them. They were a stakeholder in the company, along with several other firms. But they sold off most of their stock years ago (basically to help their bottom line in the late 90s and early 2000s, when they were really bleeding some cash).

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