Dell did it.....

Quoted from: HoustonChronicle.com
© 1985 - 2002 Hearst Newspapers Partnership, L.P.

More from my source.....
Today we signed a definitive agreement to acquire Alienware to further expand our portfolio of high-performance PC solutions. Alienware is a successful, high-growth company with a highly respected brand.



Dell’s XPS products and Alienware’s products complement each other to address a wider range of enthusiast and high-performance PC customers. The acquisition of Alienware will enhance our commitment to customers seeking extreme performance. Overall, customers benefit from us offering a wider choice of products in this category, including the best performance, product options and value. We believe that Alienware and Dell have excellent cultural alignment, as both companies were founded on the direct business model.



Following consummation of the transaction, Alienware’s CEO and founder, Nelson Gonzalez, will report to Jim Schneider, Dell’s senior vice president and chief financial officer. Alienware will operate as a stand-alone, wholly owned subsidiary and maintain its own product development activities, product marketing, sales and technical support operations and brand under the same management.



We will not sell or service their products and they will not sell ours. We expect to provide our expertise in supply chain management and logistics, but we will keep our operations separate. In terms of financial reporting, Alienware’s results for external purposes will be recorded in the geographies where they occur.



While the acquisition is being announced today, it will not be final until all regulatory and other conditions are met, approximately 30 to 60 days from now. Until then, we must maintain and operate the companies as separate entities. All integration activities must wait until the closing of the acquisition. Accordingly, we are asking all employees not to make any contact with Alienware personnel until closing.



This announcement clearly signals to our customers our commitment to high-performance computing.

Or AMD backdoor for an even shorter line

Cheap enough for Dell to buy.

Everything is cheap enough for Dell to buy!

Meh, let's look at Wal-Mart:

2005 Gross: Over $250 Billion
2008 Goal: $1 Trillion gross

Profit Wal-Mart has: Near $100 Billion

Wal-Mart could buy Dell and everything else, .

~~Mad Mod Mike, pimpin' the world 1 rig at a time

Tru64 Dat, but I wouldn't put Wal-Mart above buying them too .

~~Mad Mod Mike, pimpin' the world 1 rig at a time

Dell is only #3 behind HP and IBM

Alienware basically saw the money and power. and bent down and said " give it to me right in the A$$ fast and hard baby. Lol Alienware sold out yo.
R.I.P 1996-2006

Tru64, but I read a review saying the Alienware cases are flimsy and not LAN-Party friendly...so much for the best =/.

~~Mad Mod Mike, pimpin' the world 1 rig at a time

Yes, Alienware cases are crap :S They are just normal cases with shiny plastic stuck on.

No way I would waste money on one of their pos computers, even more so now that Dell owns them.

I read it. and it basically looks like a Overvamped Factory manufactured. Floatpoint crap. It's going to perform like a low end underclocked Conroe Processer at best (if overclocked Further).

Michael Dell doesn't necessarily have complete control over what goes on at Dell. He of course still owns a controlling interest in the company and is the chairman- but that doesn't mean he can put a stop to something the CEO wants to do. The CEO can spend capital pretty much however the hell he wants. So maybe Michael Dell thought it was a bad move, but he couldn't (or didn't) really want to fight it.

Now things change when Dell starts spending it's cash reserves- that requires approval from Michael Dell and the board.

Anyways, Alienware is chump change to Dell. Like a couple people said earlier, they did it for 1 of 2 reasons:

1. Plausible denial on the AMD issue
2. Revenue growth

I looked up Alienware's revenue's last year... it was around $300 million. That's nothing. And who even knows what their profits were? No one except Dell. Alienware was a privately owned business; they weren't required to report earnings to the SEC. That's why I want to know how much Dell spent. That'll give a good perspective on what Alienware was really worth. At any rate Dell will eventually have to report it to the SEC- so we'll know soon enough.

Anyways, Alienware ain't gonna do much for Dell's bottom line. It's good that they are going to preserve the name and entity though. For all intents and purposes, Alienware is still Alienware. The only real difference is who owns them. This of course is subject to change at any moment though...

SO SO SO
Will Dell (the main company) now FINALLY begin making interesting PCs and use the AMD chips for home PCs?
Will the customer service of Alienware finally get better?
I hope one of these actually come true.

Agree with you. I hope that Dell’s experience with AMDs through Alienware will make them decide on an AMD Dell. Hurrah for more competition.

P.s. Will this make Dell one of AMDs largest customers ?

btw how can you have a $10,000 PC? Is the case gold-plated aluminum or something? OH. right. its a dell. i forgot to add on the 40% profit margin

This looks like further consolidation of the computer industry, it worked for car manufactures, at least some, buy high end models to get into the market segment. Gateway got into the low end buying E Machine. Likely HP and possibly Gateway will look at buying Voodoo. The problem is that it is relatively cheap to build computers compared to cars and this is an opportunity for some enterprising folks to begin building high end gaming machines. $300 million in gross sales ain't exactly chump change so there is a market for these boutique high end machines.

http://www.redherring.com/Article. [...] =Companies

Written about a month ago...

LOL, i have seen a place called "Car-Mart" near where i live it kinda looks like a Wal-Mart