Monday, February 2, 2004
Gateway to Buy eMachines for $234M
Poway-based Gateway (www.gateway.com) announced that it is looking to buy Irvine-based eMachines (www.emachines.com) in an attempt to stay on top of the PC market. Gateway will buy eMachines for a combination of stock and cash, worth approximately $230M. eMachines' CEO will become head of the combined company, and Gateway's Waitt will remain chair. The company is looking to capitalize on eMachines' strength in low-en machines, and stated that it would be adopting eMachines' distribution and operating model.