Gateway to buy eMachines

[SM-Bot]

Gateway has announced plans to buy eMachines for $30 million in cash and 50 million shares of stock. This move will make gateway a strong 3rd place among PC manufacturers.

The companies' combined PC businesses would constitute the third-largest PC manufacturer in the United States, Gateway said, and rank it eighth in the world. The deal is subject to regulatory approval, and is expected to close in six to eight weeks.

Source: Anandtech

[profdlp]

This should be interesting. Over the past few years emachines has somewhat improved their quality (granted, they had nowhere to go but up...), while gateway has slipped (IMHO).

Could this presage a return to AMD by Gateway?

[primesuspect]

Well, it's going to have to, since eMachines use AMD processors right now.

Let's face it - eMachines are about as budget as you can get, and for budget performance, you cannot touch AMD. AMD is the only realistic choice for budget applications.

[profdlp]

Well, it's going to have to, since eMachines use AMD processors right now...
Many questions here:

Does Gateway leave emachines as a separate entity, or absorb them into the Gateway line? Do they phase out AMD for the emachines to keep their brown-nose status with Intel intact? Do they return to putting AMD in their Gateway line?

[Geeky1]

The new amd-based emachines desktops and laptops are actually excellent, for pre-built machines, considering how much they cost. I mean, what sub-$800 Dell comes with a DVD burner, a DVD-ROM, 512MB of RAM, a 160gb hard drive, an AGP slot, 6ch audio, a 2.8GHz+ P4 (to compete with a 3200+), and integrated or discrete graphics that can compete with the nforce2 IGP? Last time I checked, Dell couldn't even touch that.