ARM Stock Rises on Apple Purchase Speculation
Could ARM stock be becoming the new fiscal hotness due to Apple takeoever rumors?According to Electonista, ARM's stock closed high on the London Stock Exchange after surging up in price by 32% on Thursday, with speculation that the rise comes as a result of rumors of a Cupertino buy out of the microprosessor powerhouse.There's just one problem: While the yarn about Apple buying ARM has been spun many times in the past, at this point in time, such a purchase would make very little sense.ARM's technology licensing system is incredibly flexible, allowing companies to tinker with their designs to meet their own particular needs. A great example of this can be found in the iPhone 3GS and the current iPod touch. Both sport Samsung-made chips based on an ARM design which has been pimped out to meet Apple's requirements. With such freedom to make changes under a licensing agreement, there's not much value to be found in purchasing the company, especially when one considers the fact that in buying the company out, Apple would have to honor the contracts ARM already has with other handset makers or risk being sued. Again.Have no doubt that should this story develop, we'll be following it.
http://www.maclife.com/article/news/arm_stock_rises_apple_purchase_speculation
