Gateway Mooooooves East - Far East, That Is

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Gateway Mooooooves East - Far East, That Is

PC vets remember when 'computers from Iowa' catapulted Gateway 2000 to mail-order PC prominence. Those days are long gone, and today Taiwan's Acer announced it's buying Gateway for $1.90 per share (or about $710 million). Acer and Gateway expect the process to wrap up in December of this year. It's a huge comedown for the one-time PC powerhouse, which a decade ago turned down a $7 billion dollar buyout offer from Compaq.

Winners and Losers

The upside? Acer will jump ahead of China's Lenovo to become the world's number three PC maker. The downside: another icon of the PC business of the 1980's has been swallowed up. Ironically, it was Lenovo's purchase of IBM's PC business in that helped catapult it to its (now former) number three position, and it was Acer's acquisition of Texas Instrument's TravelMate and Extensa notebook computer lines in January 1997 that helped fuel its growth a decade ago.

Packard Bell, Gateway, Acer, and Lenovo

What's the Packard Bell connection in all this? Gateway earlier announced it was planning to buy all the shares of PB Holding Company, the parent company of Packard Bell BV (the former US titan of the low, low-cost PC is now based in France), exercising a right of first refusal it signed in 2006. If GatewayAcer goes ahead with the PB acquisition, it will scuttle Lenovo's attempt to buy PB.

The Company Ends, but the Brand Goes On

Although Gateway will no longer be an independent company, the Gateway brand will still be alive and well at retail stores like Best Buy.

Down Memory Lane

In this 1995 article from Wired, discover how Gateway 2000 grew into a multibillion-dollar business. See a history of Gateway 2000/Gateway logos in this 2002 article at CNet.com

In 1996, Packard Bell shows how you can "do it all from home," in this TV commercial available at YouTube, annoying librarians everywhere. PB's mid-1990s' computers were named 'number 1' in PC World's list of the ten worst PCs.

Acer's UK website provides a brief history of the company (which was originally known as Multitech).

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gregseq1

Great, what’s next Kia will buy out Ford.

I bought an American computer for the fact that it was from a American business.
Not that Acer is a bad company but I had nothing but good experiences with Gateway at work and had an emachine I used nonstop for 7 years without it breaking, I gave it away and it’s still working. Before that I had a Compaq which was a great computer company, before it was just a cheaper brand of a bigger corporation.
I have a Presario now and was going to get a Gateway when I was able to.
Now I’ll just get HP or Dell if Sony doesn’t buy them first.

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L_M_Damiani

I have owned several Acer/Altos servers & they ran 24/7 without failure - SCO Unix OSes.
Perhaps, PB & Gateway MAY benefit from new ownership.

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Marcus_Soperus

Although Gateway was based in South Dakota from 1989 through 1998, it started on a farm outside of Sioux City, Iowa in 1985: http://ecommerce.hostip.info/pages/474/Gateway-Inc-EARLY-HISTORY.html

After South Dakota, the company moved west to California.
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It's amazing how illogical a business built on binary logic can be.

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Talcum X

Allrightythen! Interesting stuff.

I would label Gateway and the poster child for why not to put a not-too-distant year as part of your company's name. Once Y2K came closer and closer, if they kept the 2000 after the year came and gone, they company would seem to be always behind. Wise choice to drop it, but unfortunately, it didn't make the future any brighter.

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Every morning is the dawn of a new error.

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Talcum X

Ah the brand names of old. I'm a PB vet of the early '90s. No, not owner, employee and not proud to say so, either. Based in an ex-air force base is Sacramento, Ca, (thanks to our wonderful government cutbacks) I joined the crew with my best friend to work on the 'B' line. (referb) Ah, the horror stories I could share. At that time they were already 22M in debt to intel for procs. I was there for less than 6 months. I coldn't take it (the cheapness that is).
I'm not sure about the Iowa in the Gateway legacy, but they called home in Sioux Falls. SD. I lived for a number of years in the other end of the state in the Black Hills, when they were still a fairly good name. By then, they were starting their dark road down proprietaryism.

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Every morning is the dawn of a new error.

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n0b0dykn0ws

Yep. Now Acer will own them as well unless Gateway is forced to sell them off first.

So now the majority of low end systems will be under the same company. Lovely...

n0b0dykn0ws

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satr

cool

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