Feeds

'Gossips' say Apple will acquire ARM

Financial people will talk

Combat fraud and increase customer satisfaction

London's financial district is "aflame" with rumors of a possible takeover of ARM by a company that only yesterday announced that it was sitting on a cash reserve of $41.7bn: Apple.

With that amount of liquidity sloshing around, such a takeover would be by no means unrealistic for Jobs & Co.

According to Wednesday's Evening Standard, The City's "gossips" are floating a rumor of Apple's interest in the UK chip designer.

And apparently many financial types feel there may be truth behind that gossip: the Standard reports that more than five million ARM shares changed hands on Wednesday, boosting the stock price by over 3 per cent and making it FTSE's biggest winner in the day's trading.

"A deal would make a lot of sense for Apple," one trader told the Standard. "That way, they could stop ARM's technology from ending up in everyone else's computers and gadgets."

Which would, shall we say, send shockwaves throughout the "computers and gadgets" industry.

Apple was recently reported to have bagged all or part of chip-designer Intrinsity, (one of) the alleged brains behind the A4 chip powering the iPad. Also, Cupertino acquired chipmaker PA Semi back in 2008, although word on the street is that many of the engineers that came along with that deal have moved on to their own start-up, Agnilux - which was just acquired by Google.

But those acquisitions would be small potatoes compared to an Apple acquisition of ARM. Although the Cambridge-based chipmaker's stock closed today at 251.1p, the Standard's sources are of the opinion that a takeover offer would be in the 500p per share range - which would place ARM's value at more than £5.2bn ($8bn).

That figure would amount to nearly 20 per cent of Apple's war chest - but the competitive advantage of acquiring ARM might very well make such an expenditure a long-term bargain.

After all, Apple is essentially minting money right now. Why not spend a good chunk of it to both enhance your chipmaking expertise and kneecap your competitors? ®

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.