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Acer-Gateway deal is valued at $710 million USD

There is big news out of the computer world today. Acer today announced that it has reached a definitive agreement to purchase U.S.-based Gateway, Inc. Gateway is currently ranked as the fourth largest PC manufacturer in the U.S. with shipments of over 20 million PCs per year.

The acquisition is estimated to be valued at $710 million USD ($1.90 per share) and is expected to be finalized in December 2007.

"This strategic transaction is an important milestone in Acer's long history" said Acer chairman J.T. Wang. "The acquisition of Gateway and its strong brand immediately completes Acer's global footprint, by strengthening our US presence. This will be an excellent addition to Acer's already strong positions in Europe and Asia.  Upon acquiring Gateway, we will further solidify our position as number three PC vendor globally."

"Joining with Acer will enable us to bring even more value to the consumer segments we serve and capitalize on Acer's highly regarded supply chain operations and global reach to expand the scope of the Gateway and eMachines brands around the world," remarked Gateway CEO Ed Coleman.  "Acer has made impressive strides in the global PC market and the board and I welcome this merger."

From statements made by representatives for both companies, it appears that the eMachines brand -- which Gateway acquired 2004 for roughly $262 million USD -- and Gateway brand will live on under Acer's massive wings. The retention of the brands also means that Gateway will likely continue to flaunt its "cow heritage" much like the Chick-fil-A restaurant chain.

Almost exactly one year ago, it was reported that John Hui offered $450 million USD to purchase Gateway's retail division. The bid, however, was never accepted by Gateway. "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," said Hui in August, 2006. "I believe that management and the board need to adopt a sense of urgency to address Gateway's problems."

The news of Acer’s acquisition comes just weeks after Gateway’s announcement that it would enter the Chinese PC market with desktop and notebook computers.



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RE: The future is coming!
By stromgald on 8/27/2007 12:01:18 PM , Rating: 2
Ditto, I think all the Microsoft monopoly hate is overblown. Because of their business, they really can't exert that much influence over their suppliers and customers could turn to Apple, Linux, etc (albeit unlikely). Despite the escalating price of operating systems, they haven't really been abusing their power.

I'm more worried about Wal-mart and their business practices in influencing industries higher along their supply chain than Microsoft. Microsoft is just a more high profile case and people like to jump on them all the time.


By ObscureCaucasian on 8/27/2007 12:45:58 PM , Rating: 2
The nature of the OS business makes monopolies better for the consumer in some aspects. Compatibility was much easier with one OS, as was problem solving. With technology these days software is progressing towards being platform independent. Microsoft has actually been helping out a ton is this aspect with their .NET technologies. Sure they haven't released a framework for Mac or *nix, but how much help do you want them to give the competition. Projects like Mono won't advance as fast as a MS one, but 5 or 10 years down the road, many programs will run independent of platform.


RE: The future is coming!
By TomZ on 8/28/2007 12:46:07 AM , Rating: 1
quote:
Despite the escalating price of operating systems, they haven't really been abusing their power.

The price of Windows has actually remained quite constant for the past 10 years or so. This supports your argument a little more.


"And boy have we patented it!" -- Steve Jobs, Macworld 2007














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