ARM to Remain Independent – Company

Head of ARM Warns Potential Buyers

by Anton Shilov
08/23/2011 | 02:58 PM

ARM, the developer of microprocessing technologies for ultra low power devices, believes that it will remain independent despite of the interest towards the company by large customers, such as Apple.

 

"If you get a buyer who is a significant part of the ecosystem, in which they already play a part, it is likely that they would be excluding part of the market and therefore diminishing part of the value of ARM. ARM has been built around the principle of being agnostic at every point in the value chain. Because of that approach, it means that acquisitions are very difficult. It's not impossible, but ARM is a very valuable business as it is and a significant part of that value lies in its agnostic approach," said Warren East, chief executive officer of ARM, in an interview with The Telegraph.

 

According to Mr. East, customers of ARM simply do not need to buy the company as they have access to the technology without owning ARM. Moreover, ARM hardly needs to be bought as the amount of its customers allows to continue development of technologies for central processing units (CPUs).

"If you look at the end customer, like an Apple, or any company within the ecosystem at any particular point in the value chain, if one of those companies were to acquire ARM – well, why? They either want access to the technology, which they have already, or they want to prevent competitors from gaining access to it. In reality it doesn't work very well... If you want to prevent your competitors getting the technology, it's not a very good way of doing it. There are 800 licensees out there. Most are perpetual licenses. They last forever. The worst that company could do is seriously inconvenience their competitors,” said Mr. East.

The head of ARM also does not believe that the company may be bought by other chip designers, in particular Intel Corp., due to potential issues with anti-trust organizations.