Gateway buying Emachines

http://makeashorterlink.com/?P5DC22F37

Gateway just came off a record 12th quarter without a profit, and now it's
buying the company that just surpassed it in the PC sales rankings. I don't
know when you're struggling to be profitable, it doesn't make a lot of sense
to be spending more money to buy stuff.

Now, the deal says that Gateway is buying Emachines, but it looks like the
Emachines CEO will become the CEO of the combined company. So it looks like
Emachines is taking over Gateway.

Emachines is a company that sells a lot of AMD-based machines. Gateway is an
Intel-only company that used to have an on-again/off-again relationship with
AMD. I think the on-off nature of the relationship probably got Gateway
barred by AMD, unless Gateway made significant commitments to AMD. This
might be Gateway's way back into an AMD relationship. And with the new CEO,
it's possible that the decision making process will be much less flakey than
before.

Yousuf Khan