Apple set to reap benfits from ARM flotation

Apple set to reap benfits from ARM flotation
Tom Foremski
The forthcoming public offering of shares in Advanced RISC Machines, (ARM), could net Apple Computer a golden windfall from an investment made in ARM more than 8 years ago.
Apple invested $3m in the company and holds a 27.5 per cent stake. With an estimated per share price for ARM of about $7.49, Apple’s stake will be valued at more than $93m. It has already said that it intends to sell about 2.5 million shares which will give it almost $19m.
The Apple investment in ARM helped the chip design firm establish itself in the fast growing embedded microprocessor market and Apple committed to using ARM chips in its Newton and Emate products. Ironically, Apple recently stopped production of those products and now offers no ARM based products.

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