Gateway Acquires eMachines

Logla

"Gateway, a PC and digital electronics maker who lost $114 million last quarter, announced it had reached an agreement to acquire eMachines, a rapidly-growing US-based privately held PC company, for 50 million shares of Gateway common stock and $30 million in cash. The combination of two companies will establish a very strong No.3 computer company in the USA and the eighth largest PC maker on the planet.

Last year Gateway and eMachines shipped nearly equal numbers of PCs – about 2 million, or about 4 million personal computers in total. Combined market share of both firms in the PC business – roughly 7% – is not large enough to compare with major players – HP, Dell and IBM – but it looks like the intention of the deal is to solidify and improve current positions of Gateway and eMachines in the term of the next couple of years, but not to fiercely challenge bigger players straight away.

eMachines has been focusing on low-cost personal computers for consumers who acquire PCs via retail stores, such as BestBuy, during the recent years. Such strategy allowed the company to rapidly improve its positions and even become moderately profitable. Currently the firm needs to expand its businesses and requires additional funds that are pretty hard to find for a company that became privately-owned in 2001."

Source: X-bit Labs

swimtech

Gateway has needed to do something for themselves for about a year and a half now... Hope this helps them...

The_Neon_Cowboy

rofl whyed tey do that? lol they just bought a bag of issues lol

BiGBrOwNPimpsta

lol and a bag of crap

The_Neon_Cowboy

do you even know 1/2 of what i've seen such as the "ghost machies" that would just go a surf buy theselfs stuff that is beyond belife

EcPercy

I hate to admit it, but when my wife wanted a computer I went out and got an emachines ... after rebates it was like $500 came with 17" flat panel, 80gb hdd, athlon 2000+, 512mb pc2100, 16x dvd, 32x cd-rw, speakers, keyboard, mouse, and a lexmark printer.. windows xp... etc... its not that bad of a deal... of course the second I brought it home.. I powered it on to make sure that it loaded windows and then I slicked the hdd and put on xp pro... and rid myself of the bloatware

Also, that was over 1 year ago... the computer is used for the occasional game of bf1942 (radeon 7500) , but my wife mostly uses it to look at the internet and email.. probably the most common use for a pc...

Falstaff

The only positive thing I can see here, is the potentiol for growth in the consumer user market for more affordable machines. Lets face it, unless you got money to burn or you dont work, your not gonna tweak, overclock and blowup machines. Hard working people need machines that can deliver adequate performance for a reasonable price. I would like to see cheap PC's with Linux and enough apps to do the bills and college work. Dedicated gamers and tweakers are never gonna buy something that is "cheap" or middle of the road anyway. It is time for the consumer to benefit from all the tech that is out there within the economic grasp of an average person. Within a few years the PC is going to evolve to the point where they are gonna be as common as CD Players and a hell of alot cheaper. As for me, I dont game just use graphics intensive software, so give me a solid business machine that my son cant overclock and I will be happy. I wonder if this all wouldnt be possible unless people blew stuff up and pushed the performance envelope. Moores Law notwithstanding, most machines out there willl do an adequate job of handling the daily chores.