Acer to Buy Gateway *UPDATED*

Discussion in 'News Headlines' started by Brian, Aug 27, 2007.

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  1. Brian

    Brian Scribbler - Standard Member Senior Member

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    Acer has announced a tender offer to purchase Gateway's shares for $710 million, a hefty premium over the closing price of Gateway's shares on Friday. Gateway is also exercising its first right of refusal to purchase the rest of Packard Bell.

    Acer will pay $1.90 per share for Gateway's common stock, a whopping 58% premium over the closing price Friday of $1.21.

    Lenovo had been rumored in recent weeks to be interested in Packard Bell. That was likely the driving force behind Gateway exercising their first right of refusal. Lenovo likely made an offer, requiring Gateway to execute the option or risk losing control of the company.

    Acer ends up adding a floundering Gateway and Packard Bell, with limited market penetration, mostly in Europe. The acquisition seems strange from Acer's perspective, but is great for Gateway shareholders. They'll surely tender their shares, which beyond regulatory approval, is about all that needs to happen for this deal to close. It remains to be seen if Acer can breathe life into a Gateway brand that has struggled in relative obscurity for the last few years.

    UPDATE: Acer's tender offer to purchase Gateway would immediately double Acer's market share worldwide, creating the third largest PC manufacturer with 10.8 percent of the market behind HP (23.6 percent) and Dell (28.4 percent). Lenovo, which currently holds the No. 3 spot in the marketplace, will slip to the No. 4 spot.

    On a worldwide basis, the Acer-Gateway-Packard Bell merger would push Taiwan's Acer ahead of Chinese rival Lenovo in terms of market share and global unit sales. When you put it that way, Acer's purchase of the less-than-successful Gateway and Packard Bell brands makes much more sense.

    [​IMG]

    Looks as though Acer and Gateway have been mapping out their investment in each other. There is more information on the deal and specifics for the future in a PDF file they have posted, check it out here. This merger could bring about some new tablets or even UMPCs.

     

     
    Last edited by a moderator: May 18, 2015
  2. SgtDirtbag

    SgtDirtbag Scribbler - Standard Member

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    I hope that results in Gateway products becoming available worldwide.
     
  3. bmorison

    bmorison Pen Pal - Newbie

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    As I recall, Gateway did not have a great reputation for reliability and customer service.

    I hope this is now much better. It would be nice to see Gateway tablets down under.

    Cheers,
    Bruce. :)
     
  4. chriscannon

    chriscannon Proud Member of the PFJ! Senior Member

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    Yeah, but gateway being less than successful?!

    As I recall gateway was SO backed up with their new c-140x, that people that ordered it the week it came out, did not even get it until last week.

    It came out at the end of june/beggining of july.

    The c-140x would definately qualify as successful...
     
  5. Darak

    Darak <This space for rent PST>

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    One machine does not make a company live.
     
  6. P8RSON

    P8RSON Scribbler - Standard Member Senior Member

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    Nor do we know being new, if it will suffer any problems.

    You only have to look at the success of the Lenovo X60 which surely should have gone to the X61 ~ were it not for the fact of the screen edge problem.
     
  7. IMNOTDRPHIL

    IMNOTDRPHIL Pen Pal - Newbie

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    The S-7125C (aka CX-120 and E-155C) that I have is also a very nice unit. One of my classmates has a 15.4" Gateway that was a nice machine as well. I'd be more concerned with Acer than Gateway as the Acer units that Ive played with and my friends have are generally okay at best and pretty cheesy at worst- think early 2000s budget HPs and eMachines with desktop P4s and you'll get the idea. Granted, most of them were Black Monday specials that my buddies had picked up for something like $500 to $700, but build quality was still pretty dubious.

    The Ferrari is supposed to be their only really nice unit, and unfortunately I've not used one. But for $2000+, it should be a very nice unit, because it's in some pretty rarefied air, especially today.
     
  8. Vandyu

    Vandyu Pen Pal - Newbie

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    Gateway had good customer service when I dealt with them in 1996. But, that was before Ted Waite, CEO, got a wild hair to move the company from the upper Midwest, where it was founded, to California. When they couldn't please me by shipping me the computer I ordered, they gave me a full refund. I liked their computer, but they couldn't get the order right. That was during the time when GW and Dell were the two dueling giants, alongside IBM, Compaq (pre-HP acquisition), and other brands that are pretty well gone: NEC computers, Packard Bell, Micron. Then along came Sony, HP consumer computers, e-Machines. Toshiba was a player for a while, also. Times change. I hope the cowbox is dropped. I never did care for it, but it was the Gateway symbol. I think Gateway failed due to poor management at the top. Pretty soon, there won't be any U.S. computer companies, just like there aren't any television companies anymore. But, McDonald's perseveres.
     
  9. Vandyu

    Vandyu Pen Pal - Newbie

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    I've never cared for Acer. They always seemed like a lower-tier brand at pretty cheap prices.
     
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