For starters, Acer, in addition to the $710 million was
h-off (paying $1.90 per Gateway share) has to also bear the burden of the $300 million debt clot on Gateway’s balance sheets. Also, Gateway’s stagnating annual revenues – which having hovered around the $4 billion mark since 2000 & which stood at just $3.98 billion during 2006 – and the fact that post 2000, Gateway has lost 98.3% of its total market value are reasons enough to worry. Then, there are other issues of attaining cultural synergy and marketing challenges like positioning and managing mammoth brands like Acer, Gateway, Packard Bell and eMachine under the common umbrella which pose challenges to the vendor. Conclusively, however, this step had to be taken by Acer... and as far as challenges are concerned, it should just prove another game for Acer!
For Complete IIPM Article, Click on IIPM Article
h-off (paying $1.90 per Gateway share) has to also bear the burden of the $300 million debt clot on Gateway’s balance sheets. Also, Gateway’s stagnating annual revenues – which having hovered around the $4 billion mark since 2000 & which stood at just $3.98 billion during 2006 – and the fact that post 2000, Gateway has lost 98.3% of its total market value are reasons enough to worry. Then, there are other issues of attaining cultural synergy and marketing challenges like positioning and managing mammoth brands like Acer, Gateway, Packard Bell and eMachine under the common umbrella which pose challenges to the vendor. Conclusively, however, this step had to be taken by Acer... and as far as challenges are concerned, it should just prove another game for Acer!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
