The Channel logo
The Channel uses cookies. Find out more.

News

By | Christopher Williams 23rd August 2006 11:18

eMachines founder offers $450m for... eMachines

Gateway board mulling offer for retail business

Sponsored: Creating the Storage Advantage

China-born tech entrepeneur and eMachines founder Lap Shun Hui has confirmed he is offering $450m for Gateway's retail business.

Gateway said today it is reviewing an unsolicited expression of interest from Hui. An approach was first made 3 August, but Gateway did not "constructively engage in discussions", according to Hui's letter to the board.

Gateway acquired budget PC brand eMachines in 2004. After closing its Gateway-branded stores, the firm's retail business is now done by flogging cheap eMachines PCs through partner shops.

Hui encouraged Gateway to separate its retail business from other operations to return to profitability. Earlier this month, Gateway, the third largest US PC builder, reported a Q2 loss of $7.7m on revenues of $919m.

Rumours in June suggested Hui wanted to get back into the PC game by buying Packard Bell from NEC.

Hui's offer currently stands at $1.21 per share. Gateway's stock jumped more than 12 per cent on Wall Street yesterday, closing at $1.72. ®

Sponsored: Creating the Storage Advantage

alert Send corrections

Opinion

Chris Mellor

VC sequence could end not with a bang, but a whimper
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Chris Mellor

All that is storage does not beget gold
Lost

Features

Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini
You see a diversity tickbox nightmare, I see human beings
hands waving dollar bills in the air
AWS and Salesforce match up to Ellison's hardware