Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Acer to acquire Gateway for $710 million
infoworld.com ^ | August 27, 2007 | Sumner Lemon and Dan Nystedt

Posted on 08/27/2007 10:07:25 PM PDT by paudio

Under terms of the agreement announced Monday, Acer will purchase all of Gateway's outstanding shares for $1.90 per share. The deal has already been approved by the boards of directors at both companies and should be completed by the end of this year, subject to government approval, Acer said in a statement. Gateway's shares ended at $1.21 Friday on the New York Stock Exchange.

"This is the biggest acquisition in Acer's 30 year history," said J.T. Wang, Acer's chairman, speaking at a news conference in Taipei.

"After this acquisition, we are solidly number three in the global PC market," Wang said.

Acer's acquisition deal with Gateway also derails rival Lenovo Group's plans to acquire Packard Bell.

(Excerpt) Read more at infoworld.com ...


TOPICS: Business/Economy; Extended News; Foreign Affairs
KEYWORDS: acer; computer; gateway
One by one... First IBM... Now Gateway...
1 posted on 08/27/2007 10:07:27 PM PDT by paudio
[ Post Reply | Private Reply | View Replies]

To: ShadowAce

filing


2 posted on 08/27/2007 10:09:59 PM PDT by stainlessbanner
[ Post Reply | Private Reply | To 1 | View Replies]

To: paudio

Bad money!


3 posted on 08/27/2007 10:11:18 PM PDT by stephenjohnbanker ( Hunter/Thompson/Thompson/Hunter in 08! "Read my lips....No new RINO's" !!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paudio
One by one... First IBM... Now Gateway...
IBM still is American. The PC division was sold to Lenovo, a Chinease/PRC company.
Acer is Taiwanese/ROC.
Acer is based in Taiwan, the Republic of China on Formosa. Don't confuse Taiwan and China.
Of course many subsystems will come from Chinease factories, but this is true now.
4 posted on 08/27/2007 10:51:35 PM PDT by rmlew (Build a wall, attrit the illegals, end the anchor babies, Americanize Immigrants)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paudio

Not IBM. IBM’s laptop business.


5 posted on 08/27/2007 10:51:35 PM PDT by DB
[ Post Reply | Private Reply | To 1 | View Replies]

To: paudio
John Hui built up eMachines, Gateway bought it and ran it into the ground. Now Acer gets both for a song. Acer is very well run - I consider this excellent news forPC consumers.
6 posted on 08/27/2007 11:02:01 PM PDT by JasonC
[ Post Reply | Private Reply | To 1 | View Replies]

To: paudio
previously
7 posted on 08/27/2007 11:10:29 PM PDT by amchugh (large and largely disgruntled)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paudio
I recall when the CEO of my company, Lee Stein, invited Ted Waite to visit in San Diego. We were just planning to help him set up a means of selling his products over the internet (1996). Waite liked the city so much he decided to move his headquarters. I wonder how much that decision played into the decline and sell off of the company.
8 posted on 08/27/2007 11:11:01 PM PDT by Myrddin
[ Post Reply | Private Reply | To 1 | View Replies]

To: JasonC

Acer was my first PC...it sucked. Would have switched back to Apple had my employer not required using a PC. Hope they’ve improved. My daughter loves her two emachines and was planning on purchasing a new unit.


9 posted on 08/27/2007 11:14:43 PM PDT by bigfootbob
[ Post Reply | Private Reply | To 6 | View Replies]

To: paudio
Don’t forget HPs acquisition of Compaq.
10 posted on 08/27/2007 11:17:25 PM PDT by zencat (The universe is not what it appears, nor is it something else.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bigfootbob
They have definitely improved. Yeah they were the el cheapo brand quite a while ago. Check out the "Ferrari" laptops they made in the last couple of years, though, and you will see they can make high end stuff these days...
11 posted on 08/27/2007 11:23:11 PM PDT by JasonC
[ Post Reply | Private Reply | To 9 | View Replies]

To: JasonC

Oh wonderful, more crappy computers.


12 posted on 08/27/2007 11:27:28 PM PDT by Hubenator (Evolution does not constitute scientific evidence, nor does it convey scientific knowledge.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Myrddin

Gateway was on top of the mountain in South Dakota for awhile. Great brand, very nice computers. Then came their move to San Diego, the opening of their retail stores and the PC profit margins shrinking to nothing.

Bye bye Gateway


13 posted on 08/27/2007 11:27:50 PM PDT by SideoutFred (Save us from the Looney Left)
[ Post Reply | Private Reply | To 8 | View Replies]

To: paudio

I knew back when Gateway had those stores everywhere, they were going to have problems. I went into one to check out a computer (never having owned one) and found out you couldn’t buy one there.

You had to order it and wait for 2 weeks for it to be delivered and also pay the postage and sales tax (such a deal). I passed!


14 posted on 08/27/2007 11:31:00 PM PDT by packrat35 (PIMP my Senate. They're all a bunch of whores anyway!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Myrddin
I recall when the CEO of my company, Lee Stein, invited Ted Waite to visit in San Diego. We were just planning to help him set up a means of selling his products over the internet (1996). Waite liked the city so much he decided to move his headquarters. I wonder how much that decision played into the decline and sell off of the company.

Ted Waite has been using Gateway stock (GTW) as his personal cash machine for years and years. Check out his stock sales just over the last two years; they've been relentless, netting him vast sums of cash while Gateway's regular shareholders were getting seriously hosed (and his sales before 2005 were much, much larger!):

Gateway (GTW) insider transactions

15 posted on 08/27/2007 11:32:47 PM PDT by snarks_when_bored
[ Post Reply | Private Reply | To 8 | View Replies]

To: zencat

Remember Compaqs acquisition of DEC, they never recovered.


16 posted on 08/28/2007 12:07:57 AM PDT by Bayou City
[ Post Reply | Private Reply | To 10 | View Replies]

To: bigfootbob
Acer was my first PC...it sucked.

Mine too, it sucked too.

17 posted on 08/28/2007 12:16:29 AM PDT by Graybeard58 (Remember and pray for SSgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Myrddin
I recall when the CEO of my company, Lee Stein, invited Ted Waite to visit in San Diego. We were just planning to help him set up a means of selling his products over the internet (1996). Waite liked the city so much he decided to move his headquarters. I wonder how much that decision played into the decline and sell off of the company.

I did some contracting for Gateway about 11 or 12 years ago, commuting from KC to North Sioux City, SD for a week at a time, then coming back home for 2 weeks, for about a year. While Gateway (It was still Gateway 2000 back then) was known for being cut-throat in its wages, it seemed to be a pretty fun place to work, and the people I met were pretty happy working there. A couple of things I remember were BBQ lunches on Fridays during the good weather, with dollar burgers or brats, and a DJ under a big inflatable cow. And Ted had sponsored a couple of race cars, and he'd occasionally have them brought to the factory, and tear around the parking lot in them! That was about the time that Ted rejected a buy-out offer from Compaq, well before Compaq and HP merged.

Mark

18 posted on 08/28/2007 12:19:44 AM PDT by MarkL (Listen, Strange women lyin' in ponds distributin' swords is no basis for a system of government)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Bayou City
Remember Compaqs acquisition of DEC, they never recovered.

They did it to get into the high end workstation / midrange market. Remember that they also bought Tandon at about the same time, known for their fault tolerant systems. It did sort of make sense at the time, but then, this was the time when Intel processors began to leapfrog forward in processing power. NT was also designed to run on the MIPS processor, which was in the DEC systems, and those processors were so much more powerful than the Intel processors of that time.

Mark

19 posted on 08/28/2007 12:24:48 AM PDT by MarkL (Listen, Strange women lyin' in ponds distributin' swords is no basis for a system of government)
[ Post Reply | Private Reply | To 16 | View Replies]

To: JasonC

I have an Acer computer as my latest one.. I’m very happy with it, things like the keyboard is very high quality, and easy to type on. Also the price was incredible for what I got. Intel Core duo, 2 gigs ram, 250 gb hardrive, dvd dual, vista..


20 posted on 08/28/2007 12:31:38 AM PDT by ran20
[ Post Reply | Private Reply | To 11 | View Replies]

To: snarks_when_bored

‘... personal cash machine...’

well, DUH. That is why someone decides to start a business. Start it, build it up, and then around retirement time, sell it and hope to end up with a few mil (after taxes) in your retirement account. Then go sailing.

Too bad they don’t teach that in college.


21 posted on 08/28/2007 2:24:13 AM PDT by ByteMercenary (9-11: supported everywhere by followers of the the cult of islam.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: paudio

This “free trade” thing sure is working well for America.


22 posted on 08/28/2007 2:29:00 AM PDT by Cringing Negativism Network (Communist China: Walmart's answer to that pesky 13th Amendment.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MarkL
I was working for First Virtual Holdings, Inc at the time Lee Stein (CEO) invited Ted down. Lee and Ted did the "nickel tour" of our offices in Sorrento Valley when Ted first arrived.

When Lee was recruiting Nathaniel Borenstein, he offered to meet him for dinner. When Nathaniel arrived, he was escorted to the table. Lee asked if it was OK if Peter Frampton joined them for dinner. Lee was Peter's agent at the time. He was also Matthew Broderick's agent. It was common to have some of Lee's clients wander through. The producer for Dale Plant was a regular employee. He used his Hollywood music award trophy as a tie rack on his desk. The guy collapsed in the parking lot one morning. Too much alcohol and who knows what. We even had Crosby Loggins (Kenny Loggins's son) working on our phone bank. It was an odd place to work.

The place certainly had a typical 90s "party" atmosphere. It was a well financed startup. Working daily with Marshall Rose and Nathaniel Borenstein was really the highlight for me. The rest of it was window dressing and wretchedly long hours. I left the company and walked away from 38,000 options because the thousands of lines of code that I had to produce daily caused repetitive stress injuries to my hands, wrists and arms. The money would have been cold comfort next to the stinging tendons running through my hands and wrists. It was so bad that I was dropping glasses of water, unable to rotate a door knob and having serious problems shifting my car. The injuries didn't go away when I left, but my daily work responsibilities have been reduced enough to keep the RSI pain at bay. In the final analysis, the salary bump from working at FVHI is paying long term dividends that far exceed what I lost by walking away from the stock options.

A few of my fellow employees decided to "tough it out". One succumbed to MS as the stress triggered an "attack" that took her life. The lady who did our database work took over the tasks from the one with MS. She developed RSI problems so bad that she lost feeling in both hands. Many of us ended up at a doctor's office to treat the RSI problems. The company covered those costs (financial), but for many of us the treatment came too late. C'est la vie.

23 posted on 08/28/2007 5:12:38 AM PDT by Myrddin
[ Post Reply | Private Reply | To 18 | View Replies]

To: SideoutFred

Yep, that was a bad move. A former giant goes out with a whimper.


24 posted on 08/28/2007 5:15:50 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: paudio
Acer's acquisition deal with Gateway also derails rival Lenovo Group's plans to acquire Packard Bell.

Packard Bell is still around?

25 posted on 08/28/2007 5:16:43 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: MarkL
Remember that they also bought Tandon at about the same time, known for their fault tolerant systems.

Tandon builds tape drives. Tandem builds "fault tolerant" systems. When I was still at PacBell, we considered acquiring Tandem. It would have been a valuable addition to keep the IT shops up with fault tolerant systems. Tandem was excited about the new "non-stop UNIX". A demo was arranged at the San Ramon office. I couldn't attend due to deadlines, but my cohort in crime David St Pierre did attend. Tandem set up the machine and shortly thereafter the "non stop UNIX" stopped. It was down all day. It never ran while anyone of importance was present to see it. Suffice to say that we didn't proceed with the acquisition plans.

26 posted on 08/28/2007 5:19:14 AM PDT by Myrddin
[ Post Reply | Private Reply | To 19 | View Replies]

To: DB

>>Not IBM. IBM’s laptop business.

Desktops, too.


27 posted on 08/28/2007 5:20:27 AM PDT by FreedomPoster (Guns themselves are fairly robust; their chief enemies are rust and politicians) (NRA)
[ Post Reply | Private Reply | To 5 | View Replies]

To: JasonC
Acer is very well run - I consider this excellent news forPC consumers.

I bought an Acer a little over a year ago.
The worst combined machine / customer service I've ever experienced in the electronic marketplace.
Over a period of several months the machine was packed and shipped to Texas from PA four different times without resolve.
. Acer refused to replace the machine but I don't think it would have mattered. I think they're just junk. Never did work right.
Almost funny thing is they have a website they direct you to that's named: fixmyacer.com
They'll fix your acer alright if you're silly enough to buy one.
It feels so good to finally get a good rant in on Acer.

28 posted on 08/28/2007 5:24:10 AM PDT by Ramcat (Thank You American Veterans)
[ Post Reply | Private Reply | To 6 | View Replies]

To: FreedomPoster

They didn’t make any desktops at that time did they?


29 posted on 08/28/2007 5:26:52 AM PDT by DB
[ Post Reply | Private Reply | To 27 | View Replies]

To: Bayou City

DEC deserved it.


30 posted on 08/28/2007 5:33:17 AM PDT by mad_as_he$$ (Republican DOES NOT equal Conservative!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Myrddin
Tandon builds tape drives. Tandem builds "fault tolerant" systems. When I was still at PacBell, we considered acquiring Tandem. It would have been a valuable addition to keep the IT shops up with fault tolerant systems. Tandem was excited about the new "non-stop UNIX". A demo was arranged at the San Ramon office. I couldn't attend due to deadlines, but my cohort in crime David St Pierre did attend. Tandem set up the machine and shortly thereafter the "non stop UNIX" stopped. It was down all day. It never ran while anyone of importance was present to see it. Suffice to say that we didn't proceed with the acquisition plans.

Thanks for the correction. You're right. Actually, a company that I was doing contract work for had a pair of the Tandems installed at their "hot site" for the very reason you mentioned... "Non-stop" computing. A terrific idea. However, not even the Compaq guys (former Tandem guys) could get the things to run reliably. One thing I remember was that the cache battery backups used D-cell alkaline batteries...

It was a really expensive disaster for a very large financial institution.

Mark

31 posted on 08/28/2007 5:35:37 AM PDT by MarkL (Listen, Strange women lyin' in ponds distributin' swords is no basis for a system of government)
[ Post Reply | Private Reply | To 26 | View Replies]

To: packrat35

Gateway had the right idea (as Apple later proved). A retail store where customers can talk to a person who was an expert on PC’s rather than what you find at best buy, a floater from the digital camera or appliance section, was badly needed. BUt their execution on that idea was awful!


32 posted on 08/28/2007 5:48:42 AM PDT by N3WBI3 (Light travels faster than sound. This is why some people appear bright until you hear them speak....)
[ Post Reply | Private Reply | To 14 | View Replies]

To: paudio; All

Does anybody here actually own an Acer computer? If so is it any good?


33 posted on 08/28/2007 5:50:32 AM PDT by Artemis Webb (RON PAUL: "It will be a little bit better now with the democrats now in charge of oversight ")
[ Post Reply | Private Reply | To 1 | View Replies]

To: JasonC
I received an eMachines computer as a gift before Gateway bought them. At first I thought I was getting a piece of junk. It was extremely well made and dependable. Much more so than the HP I owned before.
34 posted on 08/28/2007 5:54:09 AM PDT by Artemis Webb (RON PAUL: "It will be a little bit better now with the democrats now in charge of oversight ")
[ Post Reply | Private Reply | To 6 | View Replies]

To: DB

IBM? Sure they did.


35 posted on 08/28/2007 6:03:15 AM PDT by FreedomPoster (Guns themselves are fairly robust; their chief enemies are rust and politicians) (NRA)
[ Post Reply | Private Reply | To 29 | View Replies]

To: Myrddin

I wonder how much that decision played into the decline and sell off of the company.

Not much at all. What ruined Gateway was when Ted Waite stepped aside and brought in outside executives to run his company. He left to spend more time with his family. The company went south almost immediately.

Ted jumped back in to try to save his company, but it was too late.


36 posted on 08/28/2007 6:22:56 AM PDT by Francis McClobber
[ Post Reply | Private Reply | To 8 | View Replies]

To: ByteMercenary
‘... personal cash machine...’

well, DUH. That is why someone decides to start a business. Start it, build it up, and then around retirement time, sell it and hope to end up with a few mil (after taxes) in your retirement account. Then go sailing.

Too bad they don’t teach that in college.

If you think that the principal reason somebody builds a business and goes public with it is simply so that he can sell billions of dollars worth of his stock to investors/suckers while the company's stock price (and hence public value) steadily declines over a period of years, your concept of capitalism is askew.

37 posted on 08/28/2007 6:38:57 AM PDT by snarks_when_bored
[ Post Reply | Private Reply | To 21 | View Replies]

To: Artemis Webb
Does anybody here actually own an Acer computer? If so is it any good?

See rant / post 28 above.

38 posted on 08/28/2007 7:43:01 AM PDT by Ramcat (Thank You American Veterans)
[ Post Reply | Private Reply | To 33 | View Replies]

To: FreedomPoster

My mistake.


39 posted on 08/28/2007 10:44:21 PM PDT by DB
[ Post Reply | Private Reply | To 35 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson