John Hui Offers Big Bucks for Gateway Retail Business
August 24, 2006 3:19 AM
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Computer mogul John Hui has his eye on another PC manufacturer
Lap-Shun Hui, better known simply as
, has placed a $450M USD offer out on the retail division of Gateway PCs. Hui, co-founder of eMachines and founder of KDS, has a bit of a name for himself in the PC industry with mega-takeovers and low-cost PC components.
Hui recently got his name in the papers after
putting in an $87M USD bid
out on the retail division of NEC. However, it appears as though that deal had fallen through as Hui placed his $450M USD bid on the company in a letter dated August 3, 2006. In another memo, dated August 21, 2006, Hui adds "I am very disappointed that Gateway has chosen not to constructively engage in discussions with me and my advisors on the proposal that I sent to you on Aug. 3. I believe that management and the board need to adopt a sense of urgency to address Gateway's problems."
eMachines sold for more than $30M cash and $235M stock in June of 2004 to Gateway, of which Hui received a fairly nice check. With Hui's bid on the retail division of Gateway, things really will have come full circle has the majority of the reason Gateway continued to hold market share over the last two years has been directly due to the eMachines brand.
Hui already holds nearly 5% of Gateway as part of a stock-swap he received during the eMachines acquisition.
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RE: A real Change
8/24/2006 8:57:23 AM
Well, at least it's just the box with the cow pattern on it, and not the computer tower or laptop itself! ;)
I don't have anything against Gateway, at least nothing specific. They're just another slap it together, cheapest components, half-assed customer service computer retailer, much like Dell, HP/Compaq, etc, out there. Their bottom line is to sell you a computer today, and then hopefully another one once you've got this one paid off, then another one, etc.
To all those companies, it's just that attitude that caused me to build my first computer, back 4-5 years ago, and will continue me in that same direction. While I don't have the savings anymore that I used to enjoy (my Gateway Athlon 750MHz computer system, the last one I bought out of a box, cost me $1700.....my first computer build, an Athlon XP2200+ a year and a half later, cost me ~$700, with twice as much mb ram and 5x the hard drive space), I'd still rather build than buy some rubber-stamped garbage.
In fact, it's a 50/50 chance right now that my first laptop will be a barebones that I'll assemble into my own system. :)
RE: A real Change
8/24/2006 12:24:04 PM
The cow pattern neve bothered me much, for awhile it was kinda charming and casual in the face of the fast-moving tech industry. They gradually moved away from the Gurnsey black and white splotches to more symmetrical, 'sanitized' versions which I think ruined the whole effect.
Still, I can't think of any corporations which would choose outfit an entire company in "Cow Design". I doubt they had much presence outside home users.
Anyway, for years I've scanned Gateway's ads and TV commercials. They
to have competitive prices against Dell, but when you look closer you find the Gateway machine was always providing less: smaller HDD than the Dell, or maybe less RAM, or CD-R instead of DVD-R. They've never been truely able to beat Dell on what you get for the price.
As for their service, well... I remember calling Gateway about 10 years ago for my buddy's machine. Something simple like drive rails, and they
to sell me any parts because I wasn't the actual owner. When I called back they grilled me about my bud's whole name, exact model number, and why I even needed those drive rails in the first place. Gave me a sour feeling towards the whole cow brand. Never had a service issue like that from Dell, IBM, nor HP.
Good Luck John Hui, trying to resusictate that dead cow.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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