Acer buys Gateway

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Wackbag Staff
Aug 14, 2000
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Acer to leapfrog Lenovo with Gateway deal
By Kathrin Hille in Taipei and Kevin Allison in San Francisco

Financial Times
Updated: 2:42 p.m. ET Aug 27, 2007

Acer of Taiwan agreed to buy Gateway of the US for $710m on Monday. A deal would put it ahead of Lenovo, its Chinese rival, as the world's third-largest personal computer maker.

The transaction, approved by the boards of both companies, will strengthen Acer's position in the US retail market. It will also give it control of Packard Bell in Europe, a PC vendor, only weeks after Lenovo announced it was in exclusive talks to acquire the company.

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"The company that loses the most from this is Lenovo," said JP Gownder, a PC analyst at Forrester Research. "Acer is saying [it's] going to be a world player. That is a huge stake in the ground."

Gateway's shares surged nearly 50 per cent to $1.80 on news of the proposed deal, which valued the company at $1.90 a share – a 57 per cent premium to Friday's closing price for Gateway shares.

Acer was able to snatch Packard Bell out of Lenovo's hands because Gateway has a say over any sale of the PC vendor under a contract with John Hui, a big shareholder in both companies.

For Gateway shareholders, the Acer deal represents a way out after years of waiting for a turnround at the computer maker, which swung into profit last quarter in spite of falling sales.

Gateway's shares had fallen 80 per cent since 2004 after competition from Hewlett-Packard and Dell and slow US consumer sales left it a distant third among US computer makers.

"While much diminished in the US market, Gateway still has a foothold in certain retail outlets and Acer hasn't been able to crack into that," Mr Gownder said.

Acer and Lenovo have been fighting for third place in the global PC industry behind Hewlett-Packard and Dell.

On completion of the deal, which is expected in December at the latest, the combined companies are expected to have revenues in excess of $15bn.

Annual PC shipments would surpass 20m units, said Gianfranco Lanci, Acer president.

Acer and Gateway combined command 8.8 per cent of the global PC market by unit shipments, followed by Lenovo with 7.9 per cent, according to Gartner, the market research company. Acer alone held 7.1 per cent market share.

Gateway was advised by Goldman Sachs.
 

Sinn Fein

Infidel and White Interloper
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WOW... Just WOW.

Gateway's shares surged nearly 50 per cent to $1.80 on news of the proposed deal, which valued the company at $1.90 a share – a 57 per cent premium to Friday's closing price for Gateway shares.
Just 8 short years ago, the stock price was at $67/share. How sad.

I used to work for them. This really bums me out.
 

buya97

Official Virus Spreader of Little Falls, NJ
Nov 25, 2004
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Damn, I just told somebody to buy stock in them, I already bought two of their computers this year, they make a good product
 

martianvirus

READY THE ANALPROBES!!!!!!!!
Nov 20, 2005
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Fuck. Gateway makes good computers and has real Americans for customer service. I'll bet it all goes to shit now.
 

Sinn Fein

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I'm concerned about that part as well. You can call them and not have to deal with Habib... er... Bill.
 
Apr 11, 2005
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Fuck. Gateway makes good computers and has real Americans for customer service. I'll bet it all goes to shit now.
:clap::clap::clap:

i bought a monitor from them for my new rig about 2 months ago and am extremely happy i too hope it doesn't go to shit..


coincidently i have a 19" acer monitor dual'd up with it.
 

Bobobie

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Oct 1, 2005
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I used to use the Amiga Platform until Commodore went Bankrupt. My very first PC was an Acer Aspire. It had a Pentium 133mz, with 32 meg of ram. The 2 gig hard drive was half height, about the size of CD Rom Drive. I gave that computer away and it passed thru many hands but came back to me. I now use it to play old Dos games. The original drive, everything still works on it. I have no complaints about Acer.
 

hypes

Flying over your heads
Sep 23, 2004
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#8
This news pisses me off in so many different ways...Sinn Fein knows why...

oh well...at least I was part of something before it was big...

-h
 

mendozathejew

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Mar 12, 2005
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WOW... Just WOW.



Just 8 short years ago, the stock price was at $67/share. How sad.

I used to work for them. This really bums me out.
how did that happen to gateway? it seemed like one minute there were gateway commercials on tv every 2 minutes with that goofy bald guy with the ponytail. then suddenly that completely stopped
 

Sinn Fein

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Aug 29, 2002
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Here's what happened. The bald guy with the ponytail stepped down and let some corporate shirt take over and he ran the company into the ground.

Ted Waitt, the bald guy with the ponytail, who founded the company took over but it was too late.
 

CM Mark

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Apr 13, 2005
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I have an Acer Laptop. Other than the fact that my soundcard, I think it's the soundcard at least, is kinda fucked, I have no problems with it
 

hypes

Flying over your heads
Sep 23, 2004
453
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#13
Here's what happened. The bald guy with the ponytail stepped down and let some corporate shirt take over and he ran the company into the ground.

Ted Waitt, the bald guy with the ponytail, who founded the company took over but it was too late.
That corporate shirt has a name...it's Jeff Weitzen. And he is a DOUCHEBAG.

Actually, the blame for this monster fuckup is the CEO of eMachines Wayne Inouye. When Gateway "aquired" the company a few years back, part of the deal was that Gateway's founder Ted Waitt would relinquish all rights to the new partnership (therefore giving up his seat as chairman by 2005). He went on the to charitable work with his wifey and found a production company with his brother, and this DICKDOUCHE from eMachines sells out to a bunch of even larger dickdouches.

My first real job was at Gateway (back when it was called Gateway 2000 b/c every company had to have the numbers "2000" at the back of it to sound edgy and cool). I started there when it was a NOTHING company running out of an old bank building adjacent to the hog lots (this was a few years after the infamous "barn" beginnings"). I was at the ground breaking ceremony for the 100+ acre campus. I was on the engineering teams for a lot of the cool innovations that came out of that place (the high-end laptops (I was on the Solo 9100, 9150, 5100, 5150 teams), the Destination line, the original Profile, etc.). I am friends with Ted Waitt, his brother Norm, Mike Hammond, and a lot of other people who made Gateway the name-brand back in the day. I went to college in Sioux City just so I could continue working for Gateway instead of going somewhere like MIT or CalTech.

All my old engineering friends from GW have been calling me, and much like I am are seriously on their way to getting shit-faced drunk.

Fuck you Acer. Fuck you in your stupid asses, you are nothing but fucking clown shoes.

Another Rant by Hypes(c).

-h
 

Sinn Fein

Infidel and White Interloper
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Aug 29, 2002
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#14
Yep. Weitzen was some hot-shot from AT&T who was going to pave the way for Gateway to overtake Dell. Well, we saw how that worked out.

Ugh... Depressing.