“Struggling computer and consumer electronics maker Gateway Inc. announced yesterday that it is acquiring rival computer maker eMachines Inc. for $30 million and 50 million shares of stock in a deal that could make Gateway the No. 3 computer maker in the United States. As part of the deal, eMachines chief executive Wayne R. Inouye will replace Gateway founder Ted Waitt as Gateway’s chief executive,” Mike Musgrove reports for The Washington Post.
“eMachines was founded as a seller of bargain-priced computers in 1998, offering desktops priced around $400. Sales for the tiny company have climbed steadily, and they passed Gateway’s sales during the recent holiday season. During the past quarter, eMachines shipped 498,000 computers and Gateway delivered 497,000, according to IDC,” Musgrove reports. [MDN Note: Apple Computer, Inc. sold 829,000 Macintosh units last quarter.]
Full article here.