On Wednesday there were rumors of Apple's possible takeover of UK chip designer ARM Holdings. The gossip ignited after Apple announced that it was sitting on a cash reserve of $41.7 billion. As reported by the London Evening Standard, the speculation stems from Apple's desire to bring chip design in house rather than farm out the business to the external chip manufacturer.
The Guardian today reports that as shares jumped to an eight-year high, the chief executive of ARM Holdings, Warren East, played down the reports and reminded people that it's much cheaper for Apple to license ARM technology instead of purchasing the company.
"Exciting though it is to have the share price pushed up by these rumors, common sense tells us that our standard business model is an excellent way for technology companies to gain access to our technology. Nobody has to buy the company," East told the Guardian.
East makes a fair point but it's far from a solid denial that Apple is making a bid for the company. Just because it can license the technology for a fraction of the cost, that doesn't mean Apple wants everyone else to do the same. If the company is interested in something exclusive, an acquisition would be the only way to go.
