January 30, 2004: Gateway Acquires eMachines

Play
eMachines eOne Computer
eMachines eOne Computer

Gateway computer makes a bold move and purchases rival eMachines for 50 million shares of Gateway common stock and $30 million in cash.

eMachines was a company founded by Lap Shun Hui along with South Korean companies Korea Data Systems, and TriGem. Their strategy was to put a PC in every house starting at $399.

These computers housed lower-end processors, and Windows OS – enough for the average person to get on and get online.

eMachines had previously purchased Free-PC; the company that offered free computers in exchange for pop-up ads while browsing.

Gateway finalized the acquisition in March. Wayne Inouye was placed as CEO, and eMachines stayed a separate company.

Ultimately, Gateway computers was purchased by Acer computers. The eMachines brand was ultimately discontinued on Jan 17, 2013.

Subscribe to Day In Tech History:

RSS Feed - iTunes - Google Play - Spotify
Twitter - Facebook

RSS Bandwidth by Cachefly Get a 14 Day Trial

Be a Part of the Sconnie Geek Nation!

In Wisconsin, friends are called "Sconnies". Even if you're not from Wisconsin, you can be part of the Sconnie Geek Nation through my coverage! By pledging, you join the Geek Sconnie Nation! Plus, you help me cover costs so I can continue the coverage of Gadget tech, music tech, and geek culture through the shows.

  • Atari starts using the slogan “Innovative Leisure”
  • Samsung acquires the remaining 51 percent of AST
  • Sega announces the Dreamcast will be discontinued