Taiwan's Acer to buy Gateway
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TAIPEI/SHANGHAI  - Taiwan's Acer Inc will buy Gateway Inc for $710 million to double its U.S. presence and unseat China's Lenovo as the world's No. 3 PC maker, while dealing a blow to its efforts to grow in Europe.
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(InfoWorld) - YahooÂ reached a deal for prime real estate on all Acer PCs shipped globally, with a co-branded toolbar, homepage, and search engine, the companies said Wednesday. In a deal that extends the battle for the PC among Internet companies, Acer laptops and desktops shipped from Oct. 1 will direct users to an Acer-Yahoo homepage when they click on a Web browser, complete with Yahoo portal content such as the Yahoo search engine, news, music, sports and the Yahoo Personal Assistant. The pact mirrors anÂ agreement between Dell and GoogleÂ earlier this year, and ups the ante with MicrosoftÂ and other companies battling to drive PC users to their Internet-based services. The PC desktop has become a battleground for companies fighting to increase their brand awareness and Internet ad revenue. The comingÂ launch of Windows VistaÂ highlights the issue because Microsoft is moving toward putting more and more Internet capabilities, such as search, on its OS, which would make it the first item users see when they boot up their computer. In May, Dell agreed to install Google homepage and search tools on all desktops and notebooks shipped to consumers and small and medium-size businesses worldwide, effectively kicking Microsoft out of a position it has occupied for years. The Yahoo, Acer deal does essentially the same thing, and while Acer isn't nearly the size of Dell, it is the fastest growing PC vendor among the top 10, and is based in Asia, the fastest growing PC market in the world, according to market researcher IDC. Yahoo and Acer referred to the agreement as a multi-year deal, but did not specify how many years, nor whether it would involve any kind of revenue sharing. Acer will factory-install the co-branded toolbars and homepages on all of its desktops and laptops, the companies said. Once Microsoft launches Internet Explorer 7, Acer will set Yahoo as the default search engine for IE7 on all of its computers. Neither Yahoo nor Acer representatives were immediately available for comment.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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TAIPEI, Taiwan - Taiwanese high-tech giant Acer Inc. on Wednesday announced a leadership reshuffle and the retirement of Stan Shih _ the company&#39;s founder and a major figure in Taiwan&#39;s bid to dominate the personal computer industry.
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Taiwan-based Acer Inc. will acquire Gateway Inc. for $710 million in a deal designed to give the long-struggling US computer maker the size it needs to compete against larger players, the companies said yesterday.
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TAIPEI, Taiwan -- Taiwan personal computer vendor Acer Inc. expects its computer shipments to increase 30 percent to 40 percent this year, a reduction from previous sales forecasts.
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A fast growth rate and recent acquisitions in the U.S. and Europe will extend Acer&#39;s lead over Lenovo Group as the world&#39;s third-largest PC vendor behind Hewlett-Packard&#160;and Dell, according to a study released by Gartner on Wednesday.Acer and Lenovo stood neck-and-neck in global PC shipments with 8.1 percent and 8 percent market shares, respectively, in the third quarter of 2007. Before acquisitions, Acer shipped 5.54 million PC units worldwide, a healthy 58 percent year-over-year increase. The growth rate overshadowed Lenovo, which shipped 5.48 million PCs, a 22.8 percent increase.Gartner&#39;s quarterly figures were compiled before&#160;Acer finished its acquisition of Gateway&#160;on Wednesday for $710 million. Acer also funded Gateway&#39;s proposed acquisition of European PC vendor Packard Bell&#160;for an undisclosed sum. That was&#160;a blow to Lenovo Group, which in early August revealed it was in discussions with Packard Bell over a possible acquisition.Packard Bell is largely a European vendor and has a small market share, similar to eMachines in the U.S before it was acquired by Gateway, said Diana Maranon, managing partner at Averil Capital Markets Groups. Maranon&#39;s company brokered Gateway&#39;s Packard Bell acquisition.An IDC report, also released Wednesday, listed Lenovo as the world&#39;s third-largest PC vendor but indicated&#160;Acer could overtake Lenovo&#160;with its growth rates in the Europe, Middle East, and Africa and Asia-Pacific markets, excluding Japan. Acer&#39;s U.S. PC shipments grew more than 100 percent during the third quarter, though it could face more pressure from competitors as it continues to expand, IDC said.In the U.S., Acer replicated the business strategy that made it highly successful in Europe: de-emphasize retail, sell through indirect channels, and offer low, competitive prices, said Roger Kay, founder and president of Endpoint Technologies Associates. Acer stands at the low end in the U.S. market, and the Gateway acquisition gives it a good position in the middle and high-end markets, Kay said.Gateway&#39;s worldwide shipments increased 8 percent in the third quarter, though U.S. shipments fell 14.4 year over year, Gartner said.Acer&#39;s global growth strategy is paying dividends and could affect Lenovo in the U.S. and Europe, Kay said.The Packard Bell acquisition was a defensive move for Acer to ensure Lenovo doesn&#39;t get a toehold in the European market, Kay said. Acer is already one of the top notebook sellers in Europe.Lenovo showed positive growth in global markets, but Acer&#39;s acquisitions block Lenovo from acquiring some valuable shelf space for product distribution, said Charles Smulders, managing vice president at Gartner, in an e-mail interview.Lenovo could not be reached for comment.Global PC shipments&#160;during the third quarter were 68.4 million, driven by high demand for laptops in the home market, Gartner said. HP was the world&#39;s top PC vendor, with 12.8 million units shipped, a 18.8 percent market share, and 33.1 percent year-over-year volume growth. Dell followed with a 14.4 percent market share, shipping 9.86 million units, a 3.5 percent increase.The survey includes desktop PCs, laptops, and x86 servers.
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(InfoWorld) - Gateway has rejected an offer to sell its retail arm to the California man who founded the company's eMachines line. Lap Shun "John" Hui surprised Gateway's board in August when heÂ offered to buy their retail operationsÂ for a reported $450 million. Gateway issued a statement Friday saying it had decided that the offer was not in the best interest of its shareholders. In 2004, Gateway paid Hui $234 million to acquire his company eMachines, a line of entry-level PCs. Hui used the money to start an office supplies company, and still owns about 5 percent of Gateway's stock. Hui's offer would have stripped Gateway of its agreements with third-party resellers like Best Buy Co., Circuit City Stores, and Wal-Mart Stores. The company sells the rest of its computers through direct sales channels on the telephone and Internet, and through its professional business channel. Gateway, of Irvine, California, is the third-largest PC vendor in the U.S. but has posted financial losses for several quarters. Still, analysts said that breaking the company up would not have made it more competitive.
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(InfoWorld) - Shares of Asian PC makers are finally shaking off their summer doldrums as back-to-school sales give them a boost and the upcoming launch of Microsoft's new Vista OS improves their longer term prospects. A buying binge on stock of Taiwanese PC maker Acer started early this week after it was upgraded by Merrill Lynch & Co.Â and a few other large investment banks. The firms noted that after sluggish sales in the first half of the year,Â demand for PCs is on the rise. TheÂ microprocessor price warÂ between Intel and Advanced Micro DevicesÂ (AMD) saw the price on some desktop chips halved, lifting PC demand, analysts say. Microsoft's new OS is expected to come out on time and give the PC market an additional long term boost. "The PC replacement cycle should take place gradually following Microsoftâs launch of its new operating system, Vista, in the first half of 2007," said Daniel Chang, computer industry analyst at Macquarie Research Equities, in a report on Thursday. Acer's shares were also boosted this week after it reported a better-than-expected 36 percent increase in second quarter net profit to NT$3.08 billion (US$93.59 million). It's shares ended up 25 percent for the week, at NT$53.5, on the Taiwan Stock Exchange. Acer's main rival in Asia, Lenovo Group, also saw its stock rise. The company'sÂ U.S.-listed shares increasedÂ 11.2 percent to US$8.45 for this week, as of its close on Thursday. By comparison, Dell and Hewlett-Packard have been laggards. Dell shares are up 3.9 percent so far this week to end at US$22.60 on Thursday, while HP had gained 3.8 percent to US$36.56 over the same time. One reason for the difference in share performance is that Acer and Lenovo stock fell further this year than their U.S. rivals due to PC market concerns andÂ company-specific issues, analysts say, so it's no surprise the rebound has lifted them higher. Another reason Dell and HP have underperformed their Asian peers recently is because U.S. investors are concerned about the economy, including consumer demand and the likelihood of further interest rate increases. Although very little conclusive data is out for U.S. PC sales right now, analysts say demand in Asia is strong, and Europe is heating up. Henry King, executive director of technology research for Goldman Sachs (Asia), noted in a report on Wednesday that strong PC component demand in Europe over the past few weeks should help allay concerns over possible U.S. weakness. "Besides, we expect more Europeans to come back from summer vacations in the next few weeks, so sell thru data is likely to continue to trend up in September," King said. Another factor hurting shares of PC makers this year has been cutthroat price competition. But stronger market demand should ease price competition, analysts say, as should lower costs for microprocessors. In short, the seasonal demand from back-to-school and back-from-vacation sales going on now should extend for quite a while as users continue buying when Vista launches. The strong, steady demand should allow PC makers to charge reasonable prices, increasing their profit margins and making investors happy.
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BREAKING NEWS - Global #3 PC manufacturer Acer has reached an agreement to acquire Gateway, America's #3 manufacturer, for $710 million. And in a possibly contingent move, Gateway will use some of that immediate cash infusion to exercise its right to preclude Lenovo from acquiring Packard Bell from California investor Lap Shun Hui, who purchased it from NEC just last year.
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TAIPEI, Taiwan - Taiwan personal computer vendor Acer Inc. expects its computer shipments to increase 30-40 percent this year, a reduction from previous sales forecasts.
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Taiwanese PC vendor Acer has purchased 75 percent of the parent company of European electronics maker Packard Bell for &#8364;31 million ($45.8 million), Acer said in a statement to the Taiwan Stock Exchange Thursday.The deal effectively seals&#160;Acer&#39;s bid to keep Chinese rival Lenovo from acquiring Packard Bell&#160;and gaining a foothold in Europe, where Acer enjoys strong sales.Acer made the purchase with the help of&#160;Gateway, another company it acquired recently. The U.S. company held the right to counter any offer for Packard Bell if it entered into talks with a third party, which Packard Bell did by speaking with Lenovo. In October,&#160;Gateway made a binding offer to buy shares&#160;from the largest shareholder in PB Holdings Co., Packard Bell&#39;s parent company.That deal went through Wednesday, the Acer statement said. The company purchased 500 common shares of PB Holdings, in addition to 30,000 Class B convertible preferred equity certificates (CPECs) and 7,000 class C CPECs.Stock market analysts have argued that buying Packard Bell is a waste of time for Acer because the company is already strong in Europe. But industry researchers, and Forrester in particular, argue the move staved off a Lenovo ploy that might have hurt Acer in there.Acer bought Gateway last year for $710 million.&#160;
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Gateway Inc. on Monday said its personal computers will be sold at consumer electronics retail giant Circuit City Stores Inc. locations starting next month.
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(InfoWorld) - Acer's planned $710 million acquisitionÂ of U.S. PC vendor GatewayÂ won antitrust approval in the U.S. as the clock struck midnight Monday, Gateway said. The time marked the end of a 30-day waiting period in which the U.S. Federal Trade Commission or the Antitrust Division of the U.S. Department of Justice may intervene or request additional time to review the deal for possible antitrust violations. Not all transactions face antitrust scrutiny by the two U.S. agencies. Acer, of Hsichih, Taiwan, was forced to file with the agencies to notify them of its intention to buy Gateway and provide details of the proposed transaction due to the size of the deal. At the end of the day on Monday, the waiting period ended, Gateway said in a filing to the U.S. Securities and Exchange Commission. "The closing of the transaction remains subject to other customary conditions, including regulatory approvals in other jurisdictions which [Acer] anticipates will be satisfied over the next several weeks," Gateway said. Acer agreed to buy GatewayÂ in August. Once the acquisition closes, Acer will become the world's third largest PC vendor by shipments, at around 20 million desktops and laptops a year, and it will be transformed into a company with different PC brands. The boards of directors at both companies have already signed off on the agreement. Â
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Taiwanese PC vendor Acer predicts its PC shipments will grow as much as 35 percent this year led by a strong notebook PC market, a pace of growth that could see the company challenge U.S. rivals by the end of this year.Acer&#39;s revenue grew 25 percent last year to NT$461.7 billion (US$14.42 billion) and the company made inroads to the world&#39;s largest PC market, the U.S., by acquiring Gateway. The revenue figure is preliminary and only includes Gateway&#39;s last two and a half months of the year because the merger process took place late in the year.Acer bought Gateway&#160;for US$710 million last year.But the figures and PC shipments had a tremendous impact on Acer&#39;s global PC rankings in the final three months of 2007.The company took a solid third place in global PC shipments last year,&#160;topping Chinese rival Lenovo and gaining ground on Dell. Acer&#39;s global PC shipment market share during the fourth quarter of 2007 reached 9.6 percent in the fourth quarter, up 60 percent over the same time a year earlier, according to IDC, the industry researcher.Lenovo, which had been jockeying for third place with Acer all year, fell to fourth with a 7.5 percent share of the global market. HP retained its first place ranking with 19 percent market share, while Dell remained firmly in second place at 14.6 percent.&quot;Combined Acer/Gateway growth continued to be the fastest among the top vendors and is a very solid performance for the first quarter of merged operations,&quot; IDC said in a statement. &quot;Acer also clearly established itself as the third largest vendor, overtaking Lenovo, and seems to be handling the Gateway integration quickly,&quot; the statement says.This year, Acer forecast its PC shipments overall will rise between 30 percent and 35 percent, led by 40 percent shipment growth in notebook PCs. Such strong growth could help the company challenge Dell, which saw its PC shipments grow only 1.7 percent in 2007, according to figures from Gartner. The market researcher put Acer&#39;s shipment growth last year at 32.9 percent for the year.Acer&#39;s chairman, J.T. Wang, predicted last October that Acer could take up to a 12 percent share of the global PC market, putting it in the position to challenge Dell.Acer&#39;s net profit was NT$12.9 billion in 2007, up from NT$10.2 billion a year earlier. The company&#39;s 2007 figures are all preliminary, Acer said. Final results will be published later.&#160;
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Gateway CEO Ed Coleman will resign from his position at the end of January, clearing the way for Acer&#39;s top executive in the Americas to take the helm, the Taiwanese company said Friday.Acer completed its US$170 million acquisition of Gateway in October. Coleman, who served as CEO of Gateway since 2006, oversaw the start of efforts to integrate the U.S. company with its new owner. However, the completion of those efforts will be the responsibility of Rudi Schmidleithner, head of Acer&#39;s Pan-America Organization, who will take charge of Gateway at the end of January.Acer announced Coleman&#39;s departure in a brief statement that thanked him for his contributions during the transition period that followed the acquisition announcement in August. The statement said Coleman made the decision to leave the company, but did not offer a specific reason.Gateway now&#160;operates as a subsidiary of Acer and maintains its own PC brand, which is well known in the U.S.
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Computer manufacturer sells new line through major retail centers in bid to return to profitability. SAN FRANCISCO  - PC manufacturer Gateway Inc.
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Taiwanese PC maker Acer Inc. will acquire Gateway Inc. for US$710 million, Acer announced Monday.