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Dell did it.....

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March 22, 2006 8:19:26 PM

Quote:
DELL ENHANCES ITS COMMITMENT TO HIGH-PERFORMANCE COMPUTING WITH PLANNED ACQUISITION OF ALIENWARE CORPORATION
Alienware Will Operate as a Wholly Owned Subsidiary Under Existing Management

ROUND ROCK, Texas, March 22, 2006 —Dell announced today it has entered into a definitive agreement to acquire Alienware to further satisfy the growing number of consumers and businesses seeking the highest-performance PC products, including those used for gaming and multimedia digital content management. Terms of the planned purchase will not be disclosed.
Dell said Alienware will operate as a wholly owned subsidiary following completion of the transaction and will maintain its own product development, product marketing, sales, technical support and other operations as well as brand. The management and founders of Alienware will continue to operate the company as a standalone unit of Dell.
“Alienware’s products are an excellent complement to Dell’s own line of high-performance computers designed for gaming, enthusiast and media content customers. In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals,” said Michael Dell, chairman.
“Alienware has a legacy of success designing the highest-performance PCs using bleeding-edge technologies and innovative industrial design,” said Nelson Gonzalez, CEO of Alienware. “We believe that Alienware will realize significant advantages from Dell’s world-class supply chain and operational efficiencies. They will allow us to continue to satisfy our core customers with the most innovative and highest- performing PCs, and ultimately extend the reach and appeal of the Alienware brand.”


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.

More about : dell

March 22, 2006 8:21:48 PM

Quote:
DELL ENHANCES ITS COMMITMENT TO HIGH-PERFORMANCE COMPUTING WITH PLANNED ACQUISITION OF ALIENWARE CORPORATION
Alienware Will Operate as a Wholly Owned Subsidiary Under Existing Management

ROUND ROCK, Texas, March 22, 2006 —Dell announced today it has entered into a definitive agreement to acquire Alienware to further satisfy the growing number of consumers and businesses seeking the highest-performance PC products, including those used for gaming and multimedia digital content management. Terms of the planned purchase will not be disclosed.
Dell said Alienware will operate as a wholly owned subsidiary following completion of the transaction and will maintain its own product development, product marketing, sales, technical support and other operations as well as brand. The management and founders of Alienware will continue to operate the company as a standalone unit of Dell.
“Alienware’s products are an excellent complement to Dell’s own line of high-performance computers designed for gaming, enthusiast and media content customers. In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals,” said Michael Dell, chairman.
“Alienware has a legacy of success designing the highest-performance PCs using bleeding-edge technologies and innovative industrial design,” said Nelson Gonzalez, CEO of Alienware. “We believe that Alienware will realize significant advantages from Dell’s world-class supply chain and operational efficiencies. They will allow us to continue to satisfy our core customers with the most innovative and highest- performing PCs, and ultimately extend the reach and appeal of the Alienware brand.”


That's a fancy way of saying "We want more $ but don't want to work for it".

~~Mad Mod Mike, pimpin' the world 1 rig at a time
March 22, 2006 8:42:09 PM

Or AMD backdoor for an even shorter line:) 
Related resources
March 22, 2006 8:45:34 PM

AMD backdoor is probably the real motive.

I wonder how much Dell paid for Alienware...
March 22, 2006 8:50:03 PM

Cheap enough for Dell to buy. :lol: 
March 22, 2006 9:08:50 PM

Quote:
Cheap enough for Dell to buy.


Everything is cheap enough for Dell to buy!
March 22, 2006 9:11:17 PM

Quote:
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
March 22, 2006 9:13:47 PM

I thought about throwin' in "except Wal-Mart" but I thought it would make the post less ammusing.

There's a number of companies that Dell couldn't afford of course. Exxon-Mobile and Citigroup being a couple.
March 22, 2006 9:15:04 PM

Quote:
I thought about throwin' in "except Wal-Mart" but I thought it would make the post less ammusing.

There's a number of companies that Dell couldn't afford of course. Exxon-Mobile and Citigroup being a couple.


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

~~Mad Mod Mike, pimpin' the world 1 rig at a time
March 22, 2006 9:19:46 PM

Think they'll go back to them dopey commercials?

"Dude... get yourself a Da... DA.. ALIENWARE man.."
March 22, 2006 9:20:17 PM

Dell is only #3 behind HP and IBM
March 22, 2006 9:24:48 PM

Quote:
Dell is only #3 behind HP and IBM


IBM made $13.7 Billion in CASH in 2005.

~~Mad Mod Mike, pimpin' the world 1 rig at a time
March 22, 2006 10:14:56 PM

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
March 22, 2006 10:16:44 PM

Quote:
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


A Decade of Destruction in over-priced computers, what a run o.O.

~~Mad Mod Mike, pimpin' the world 1 rig at a time
March 22, 2006 10:23:02 PM

Quote:
A Decade of Destruction in over-priced computers, what a run o.O.


:lol: 
March 22, 2006 10:30:28 PM

Oh well, its better to buy a 100000$ authentic Lambourguini. Then buy a 1000$ bootleg Lamburgui at the Local Wal-mart Dealership? woops did i say that out loud? does Wal-mart sell cars yet? woo[s mybad had to wait till 2010 to say that. lol ;p
March 22, 2006 10:31:54 PM

Quote:
Oh well, its better to buy a 100000$ authentic Lambourguini. Then buy a 1000$ bootleg Lamburgui at the Local Wal-mart Dealership? woops did i say that out loud? does Wal-mart sell cars yet? woo[s mybad had to wait till 2010 to say that. lol ;p


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
March 22, 2006 10:37:43 PM

well. Considering it's Dell. I don't think Alienware is going to get anybetter then what they offer at 10,000$ with Dell giving it a doggystyle from now on. Unless they want to waste more money than make .
March 22, 2006 11:03:26 PM

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.
March 23, 2006 1:05:31 AM

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).
March 23, 2006 2:57:36 AM

What makes me laugh is how just a week or so ago micheal was pretty much laughing at the thought of buying alienware claiming that his companies machines were already faster than alienwares. So what's the story now Mr. dell :lol: 
March 23, 2006 4:12:23 AM

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...
March 23, 2006 4:16:44 AM

I wonder if this is going to influence the overall quality of the systems that alienware make. of course they won't be "alienware" anymore but if dell's running the show then may we have a whole bunch of cheap & crappy "enthusiast" systems everywhere? people will have no reason to buy from custom-built specialised enthusiast stores anymore because dell will have taken over that market as well.
March 23, 2006 4:41:09 AM

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.
March 23, 2006 4:44:48 AM

Dell has a $10K gaming pc now that they'll have the Alienware it's gonna be like $15K Dell Alien gaming pc! :lol:  What a rip off!
March 23, 2006 7:30:28 AM

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 ?
March 23, 2006 9:33:39 AM

Quote:
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.


According to my theory the customer service can only get worse and they will still sell last-generation hardware.
March 23, 2006 9:36:26 AM

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
March 23, 2006 11:21:16 AM

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.
March 23, 2006 3:20:59 PM

Quote:
$300 million in gross sales ain't exactly chump change so there is a market for these boutique high end machines.


I hate to break it to you, but it is. Especially when you're comparing Alienware to Dell in the same sentence. Or Alienware to anyone for that matter...

EDIT:

I just did some research, Alienware made about $172 million in revenue last year. So my $300 million estimate was overly optimistic. So I say again; how much do think they really made in profit last year?

http://www.usatoday.com/tech/news/2006-03-22-dell-alien...

Quote:
Alienware is on track to hit $225 million in sales this year, up from $172 million in 2005, according to recent projections by Gonzalez, the privately held company's CEO. Aguila is president.


The piddly security firm I work for makes $250 million in a QUARTER. And I guarantee you've never heard of us...

-mpjesse
March 23, 2006 3:26:03 PM

Quote:
Mr. Gonzalez concedes that Alienware is still a pipsqueak in the rearview mirror of companies like Dell and HP. “We wouldn’t show up on the radar [of the PC market],” he says.

No kidding: Last year’s sales were less than one-tenth of one percent of Gartner’s estimate of 2005 PC sales of $202.7 billion.


http://www.redherring.com/Article.aspx?a=15594&hed=Alie...

Written about a month ago...
March 23, 2006 5:40:31 PM

Quote:
$300 million in gross sales ain't exactly chump change so there is a market for these boutique high end machines.


I hate to break it to you, but it is. Especially when you're comparing Alienware to Dell in the same sentence. Or Alienware to anyone for that matter...

EDIT:

I just did some research, Alienware made about $172 million in revenue last year. So my $300 million estimate was overly optimistic. So I say again; how much do think they really made in profit last year?

http://www.usatoday.com/tech/news/2006-03-22-dell-alien...

Quote:
Alienware is on track to hit $225 million in sales this year, up from $172 million in 2005, according to recent projections by Gonzalez, the privately held company's CEO. Aguila is president.


The piddly security firm I work for makes $250 million in a QUARTER. And I guarantee you've never heard of us...

-mpjesse

My only points were that there is a market for these high end machines and a decent profit can be made regardless if their gross sales are $300 mil or $172 mil. And I would guess they have a pretty decent profit margin given their premium pricing. If they had an after tax profit of 10% that is still $17 mil. Like I think I said in a previous post, I don't think it makes sense to compare gross earnings or profits of companies like Alienware or Voodoo to Dell or HP, it's like comparing the revenue or profits of Porche or Ferrari to Volkswagon or Mercedes Benz, I was going to say GM but they don't make a profit. Let's say that the owners each only made a $1 million from the $172 mil, which would be .5% and is probaly a rediculously low figure, by most people standards that would be a pretty decent income. I'll grant if I had to get by on a million or 2 a year I'd have to cut a few things out but I'd probably get by. :D 
March 23, 2006 5:56:42 PM

Quote:
Oh well, its better to buy a 100000$ authentic Lambourguini. Then buy a 1000$ bootleg Lamburgui at the Local Wal-mart Dealership? woops did i say that out loud? does Wal-mart sell cars yet? woo[s mybad had to wait till 2010 to say that. lol ;p


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