updated 02:25 pm EST, Fri January 30, 2004
Gateway to buy eMachines
Gateway plans to in a bid to regain its footing in the PC game and broaden the distribution of its Gateway-branded consumer electronics devices at retail, reports CNET News.com. The company plans to purchase privately held eMachines for $30 million in cash and 50 million shares of its stock (the total value of the deal would be approximately $234.5 million). Under the agreement, Wayne Inouye, eMachines' CEO, would become CEO of Gateway, and Roderick Sherwood would remain as Gateway's chief financial officer. Waitt, Gateway's founder, would remain as chairman of the board.