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  • Apple May Buy ARM for an Arm and a Leg


    Apple may purchase ARM.

    Yeah, I had to take a good look at that headline too when it was just emblazoned across the London Evening Standard. And, today, as the blogosphere catches wind if what could be a major development, many are weighing in - often with some disbelief - on the prospect of Apple scooping up the prestigious processor designer.

    According to the London Evening Standard, Apple may have to cough up as much as $8 billion dollars to acquire ARM. Yes, yes... Apple has the money. But Apple only has roughly $40 billion in cash laying around. On a percentage basis, that's a mighty hefty chunk of change even for a corporate giant like Apple.

    If Apple purchases ARM, the move would be significant and the ramifications would be felt throughout the entire tech world. Given that ARM chips are as commonplace in mobile gadgets as potato chips are in the snack food aisle, Apple would have in its fold a major player that everyone worth anything in the mobile realm has a relationship with. Blackberries, Sony PSPs, Microsoft phones, Android phones - they all use ARM chips. And if Apple seizes ARM, it could be a "game changer" for real.

    Of course, just as Google has its hands full with the acquisition of AdMob, so too would Apple if such an acquisition or merger were to ultimately transpire. Are we getting ahead of ourselves? Perhaps. But there's lots of heat on this rumor and sources in the know claim they won't be too surprised in Apple announces a deal with ARM in the very near future.
    This article was originally published in forum thread: Apple May Buy ARM for an Arm and a Leg started by Michael Essany View original post
    Comments 29 Comments
    1. cypherpunk's Avatar
      cypherpunk -
      If they did this they'd be opening themselves up to a ton of antitrust lawsuits - ones that already have a very strong precedent set by the Microsoft case 10 years ago. I can't imagine that any business would be stupid enough to make a move like this when they have such a clearly laid-out picture of what the consequences of such a decision would be.
    1. Rokesomesmeefer's Avatar
      Rokesomesmeefer -
      Microsoft abused its monopoly by trying to force you to only use Internet Explorer on a PC. That would be like Apple abusing its monopoly by trying to force you to only use Apple-approved apps on your iPhone.

      Oh, right. Looks like they are, in fact, stupid enough to make a move like that.

      In any case, your comparison is invalid. The Sherman Act does not prevent a company from buying another company and incorporating their products into their own products while refusing to license the same products to other companies.
    1. Cer0's Avatar
      Cer0 -
      I am sure that Apple would have to make ARM a subsidary like part of the company and not limit it to just Apple devices.
    1. alpawa's Avatar
      alpawa -
      Is it just me, or Apple in 2010 is sounding like Microsoft in the 90's??? Beware of "geeks" bearing gifts...
    1. staterunner180's Avatar
      staterunner180 -
      Not so much an arm and a leg, as about a big toe for Apple
    1. Cer0's Avatar
      Cer0 -
      Quote Originally Posted by staterunner180 View Post
      Not so much an arm and a leg, as about a big toe for Apple
      A toe is not 20% of your body. 8 billion out of your 40 Billion cash is 20%. That is still a huge hit to the pocket.
    1. reanimationxp's Avatar
      reanimationxp -
      Quote Originally Posted by saunupe1911 View Post
      You hit the nail on the coffin. I couldn't have said it better.
      I'm gonna buy you a proverb book or somethin.. this mix'n'match s#!ts gotta go.

      People in glass houses sink ships, and don't cross the road if you can't get out of the kitchen.
    1. xtremewaianae's Avatar
      xtremewaianae -
      apple has always out played the competition, this would be an out of suit move for apple. They would be more interested to be shoulder to shoulder with a company, kinda like they are with intel. Unless there looking to lock down a standard like SoC's.
    1. Rokesomesmeefer's Avatar
      Rokesomesmeefer -
      Quote Originally Posted by cypherpunk View Post
      If they did this they'd be opening themselves up to a ton of antitrust lawsuits - ones that already have a very strong precedent set by the Microsoft case 10 years ago. I can't imagine that any business would be stupid enough to make a move like this when they have such a clearly laid-out picture of what the consequences of such a decision would be.
      Here's proof that they will do just that:

      Lala - Where music plays

      Apple just bought Lala last December. Lala was way better as a music store, not selling you some crap proprietary format. It was straight up MP3, and you could even sample whole songs before buying. Many songs were as little as $0.10 each.

      Tell me again about how they won't buy competition just to get rid of it...