Apple Looking to Acquire ARM?

By on April 22, 2010
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Mobile chip makers on the verge of a buyout?

Rumors are abound that Apple is looking to make an offer to buy out mobile chip maker ARM. The London Standard Evening reports that rumors within the financial markets in London are all pointing to an incoming Apple bid attack.

“A deal would make a lot of sense for Apple,” said one trader. “That way, they could stop ARM’s technologyfrom 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.

The buyout rumor originated after Apple reported strong Q2 earnings yesterday, and a believe that the $41.7bn cash reserve might be used to take over the mobile processor market. The speculation by stock traders sent ARM’s shares soaring up to 8.1 percent on the UK exchange.

The Register says that such a bid could cost up to $8 billion, which would take a good 20% chunk of Apple’s current stockpile reserves. If the rumor stands true, such a takeover could have severe implications for the industry, as most of the major smartphone makers from HTC, LG, Nokia, Samsung and others use some form of ARM architecture into their devices.


Mufaddal Fakhruddin is the Editor for IGN ME and thinks writing in third person about himself in an about me section is weird.

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