Gateway buys emachines

[Brian Turner]

http://news.bbc.co.uk/1/hi/business/3445827.stm

US computer maker Gateway, in the throes of a radical strategic rethink to stem three years of losses, has paid $235m (£129m) for rival eMachines.


The purchase of profitable eMachines will allow Gateway to sell in a wider range of retail outlets.

Gateway, which used to sell its own-brand PCs in own-brand stores, is now attempting to convert itself into a more diverse consumer electronics firm.

As well as PCs, it now makes such items as wide-screen TVs and digital cameras. The deal was enough to send Gateway's shares up by 10%, as investors hoped the firm was closer to achieving its strategic aims.