Gateway to acquire eMachines

[Julio Franco]

Gateway plans to acquire rival eMachines in a bid to regain its footing in the PC game and broaden the distribution of its Gateway-branded consumer electronics devices at retail.

The Poway, Calif.-based company plans to purchase privately held eMachines for $30 million in cash and 50 million shares of stock. Based on Gateway's closing price of $4.09 per share Thursday, the total value of the deal would be approximately $234.5 million.

Read more: CNet News.

 

[agissi]

I was going to say.. Gateway did seem to be losing ground. I dont see advertising anymore from them, but Dell is everywhere.

 

[Masque]

That actually is a major move by them.....E-Machines (no matter how much you dislike them) has been gaining a lot of ground (and a fair amount of respect) over the last 6-9 months.

 

[agissi]

I recon E-Machines make pretty good PCs, as they're sold locally at all local retailers around me.

 

[snowman]

yeah thats a bummer. e machines made really reliable machines. they were pretty cheap too. i would have bought from them before gateway.

 

[wicka_wicka]

eMachines are bad. Ours just randomly died. PCI slots are dead.

Edited because of language
-- Mictlantecuhtli

 

[Rick]

Crap buys crap.. Just like HP bought Compaq.

Dell is crap too... Simliar to Gateway... Emachines... Geez.. I don't think I'd ever buy a store-bought PC.

If I were to buy a PC today with features and quality in mind, I might spend the extra money for an Alienware or even Sony (although proprietary as Hell).

Maybe in several decades, almost everyone will build they own PCs.

... Or PCs will be so small that almost no one can build them, but they'll all be so fast, amazing and cheap that performance & brand really doesn't matter anymore.

 

[Rick]

Originally posted by wicka_wicka
eMachines are bad. Ours just randomly died. PCI slots are dead.

It happens with all computers. It's not just eMachine's fault, although you can't help but think what if they spent the extra cash for a more reliable board...

But even then, failures happen. What matters the most is how they handle it. Under warranty I hope?

 

[wicka_wicka]

No...this was like over a year ago. I've never heard a single person say that eMachines were good until this thread,

 

[Rick]

Originally posted by wicka_wicka
No...this was like over a year ago. I've never heard a single person say that eMachines were good until this thread,

LoL. True...

Just like any computer manufacturer, emachines has their budget and "premium" line of computers. What it comes down to (usually) is how much cash you dump into your computer.

 

[lokoo]

You can't bring your Alienware to work, can you? I would much rather my staff use an eMachine than an Alienware.

 

[PlayfullyEvil]

Personally, I'm not a fan of OEMs. But Gateway's bid to aquire eMachines (loveingly called "Evil Machines" at the computer store I used to work) is a good move. I just hope that Gateway improves on eMachines' product lines.

I've seen eMachines get sent back to the manufacturer due to failed power supplies, DVD-ROMs, and countless other components (hence the "Evil" nomeclature), but having Gateway aquire them might reduce the amount of RMAs.

I agree with the comment about the cost-effectiveness for staff members using eMachines over Alienware. This move for Gateway might help in giving them a foothold on the business market. I've seen more IBM and Dell machines than HP/Compaq desktops in medium to small business offices. If Gateway keeps with eMachines' agressive pricing, they may snag some of the small business market - provided they improve on the eMachine products.