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Asus, Acer Hint at Possible Merger Talk

By - Source: Unwired View | B 24 comments

The two Shihs talk about a possible merger of Asus and Acer.

China Times reports that a possible merger between Acer and Asus, the "double A" in the Asian press, could happen in the future. The news arrives by way of Asus Chairman Johnny Shih who answered a question about a merger of the two companies, stating that while the industry is going through a transition period, companies should keep "an open mind" about these possibilities.

Mergers and acquisitions are the latest fashion trend in the electronics industry as of late, with Google scooping up Motorola Mobility and Microsoft buying Nokia's Devices and Services division. Typically, the Asus Chairman talks about organic growth within the company, but now he may feel more compelled to reach outside the box for ways to bolster the company's portfolio of products.

Acer founder Stan Shih also chimed in on the question, stressing that for any acquisition/merger to happen, both parties must examine the deal thoroughly. The deal must provide maximum benefits to all relevant stakeholders for both companies, including employees and shareholders. The companies must also determine how a merger/acquisition will affect the industry and consumers. If such a move will create a greater value in Acer, the company would agree. If not, then Acer would reject the offer and continue on as usual.

What's interesting here is that both Shihs are not dismissing questions in the typical "we don't comment on speculation" executive manner, but are openly talking about the possibility. That said, where would Acer's lineup of hardware and devices fit within the Asus portfolio? Acer seemingly focuses on the more mainstream consumer market with tablets, desktops, AIOs and notebooks, whereas Asus is more on the high-end market while also offering motherboards, graphics cards, sound cards and more.

If anything, the merger/acquisition could mean Acer would have access to premium hardware manufactured by Asus, whereas Asus would have access to Acer's highly popular Chromebook line. Of course, all this is mere jabber at this point, but shareholders are reportedly interested in such a transaction, as Asus shares rose 1.69 percent and Acer shares rose 0.5 percent after the China Times article was published.

 

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Top Comments
  • 20 Hide
    tului , September 21, 2013 4:39 PM
    I'd just be scared Asus would get polluted with Acer's lower quality. Not to mention lack of competition hurting customers.
  • 18 Hide
    teh_chem , September 21, 2013 4:36 PM
    This would seem to be a very one-way deal; I don't see anything that Acer would bring to ASUS, except for further crapification.
Other Comments
  • 4 Hide
    moulderhere , September 21, 2013 3:28 PM
    you have got to be kidding me.
  • 4 Hide
    illfindu , September 21, 2013 3:30 PM
    This is going to sound kind of like a joke but there is a large consumer base who probably thinks these are the same companies just said differently. They also make devices around the same price/quality point I think its a good idea.
  • -9 Hide
    hero1 , September 21, 2013 4:33 PM
    This is a good idea. They can sell things under one name and give us great products. I say do it.
  • 18 Hide
    teh_chem , September 21, 2013 4:36 PM
    This would seem to be a very one-way deal; I don't see anything that Acer would bring to ASUS, except for further crapification.
  • 20 Hide
    tului , September 21, 2013 4:39 PM
    I'd just be scared Asus would get polluted with Acer's lower quality. Not to mention lack of competition hurting customers.
  • 2 Hide
    DRosencraft , September 21, 2013 5:03 PM
    Yeah... don't really know that this means much of anything positive for Asus. Don't really know that Acer's Chromebook line is as popular as this article suggests. Mergers usually provide enhanced manufacturing and distribution outlets, so that's a positive. And Acer has a lower tier that Asus doesn't while Asus has a higher tier that Acer doesn't, so as one company they could cover both extremes. However, mergers rarely work that well. Just don't know if this is automatically a good or bad idea... lots of details that would need to be worked out.
  • 0 Hide
    whitey_rolls1984 , September 21, 2013 5:05 PM
    seems like an odd pairing, thankfully I gave up on Asus years ago due to some terrible motherboards and bad customer service...

    Oddly enough I turned to Asrock (I know ironic) and they've been great
  • 6 Hide
    frankpakdmys , September 21, 2013 5:20 PM
    Rather see Lenovo and Asus merge.
  • -3 Hide
    joaompp , September 21, 2013 5:29 PM
    I guess my next build will probably be EVGA focused, I how this does not come to pass.
  • 1 Hide
    dormantreign , September 21, 2013 5:43 PM
    I'd stop buying asus stuff if this happens.
  • 8 Hide
    ingtar33 , September 21, 2013 5:47 PM
    ugh. it scares me when a company generally known for quality (Asus) is talking about a merger with a company generally known for making crap (Acer). I don't think i've ever seen that type of merger result in better products.
  • 0 Hide
    Cy-Kill , September 21, 2013 6:12 PM
    'I'd just be scared Asus would get polluted with Acer's lower quality. Not to mention lack of competition hurting customers.'

    Acer used to be very good, they've gone way downhill since I had my first Acer laptop in 2008, and I am on my second laptop -- I have owned a Lenovo IdeaPad, as well as an ASUS laptop too; but my main computer is my desktop -- and posting questions on Acer's community forums go unanswered unless the people who are paid to answer questions like you, and they only seem to answer certain people now. I may get an ASUS laptop again and sell this Acer one.
  • 2 Hide
    kinggraves , September 21, 2013 8:18 PM
    In all this talk of who's got higher quality, people are missing the bigger issue. Acer and Asus still do compete on some tiers. Mergers are never good for the consumer because you're reducing the competition in the field. A merged company would not put out a high tier laptop and low tier laptop, it would put out A laptop. There will be one less option regardless of the quality. Even Acer has it's place in the market, offering lower cost goods to people who don't need high quality. The only people that benefit here are the investors, which is why stocks went up. One company gets to reduce the competition in it's field resulting in more market control while the other company's investors get to walk off with a hefty buyout that they can "invest" in driving another company into the ground.
  • 1 Hide
    John Bauer , September 21, 2013 8:37 PM
    Companies are getting way too big. It's stuff like this that lets that happen.
  • 0 Hide
    alextheblue , September 21, 2013 8:40 PM
    Quote:
    seems like an odd pairing, thankfully I gave up on Asus years ago due to some terrible motherboards and bad customer service...

    Oddly enough I turned to Asrock (I know ironic) and they've been great


    I've had similar troubles with Asus at times.

    I also had a similar issue with a DFI Lanparty NF4 board... I ended up replacing it with a less expensive Epox NF4 board - and it was absolutely rock solid. With the DFI I went through several BIOS updates (including beta ones) it was never completely stable at stock speeds. Crashed at least once a day whether under a load or not. The Epox board is still functional in a secondary machine, still works great and has been rock solid for its long career.
  • 1 Hide
    rwinches , September 21, 2013 10:40 PM
    Reminds me of the HP-Compaq merger. So sad Compaq bought DEC and tied up it's cash. These CEO's are finance people not business people and have screwed up many top companies. Novell, Compaq, Wordperfect, Lotus, DEC, IBM PC and many Unix brands after the OSF1 fail.
  • 1 Hide
    back_by_demand , September 22, 2013 7:55 AM
    Honestly, does anyone give two shihs about this?
  • 0 Hide
    SuperAxilla , September 22, 2013 7:21 PM
    ASUS and Lenovo would be awesome. ASUS acquiring Acer scares me.
  • 0 Hide
    amk-aka-Phantom , September 23, 2013 5:53 AM
    NO NO NO NO NO! Please don't let this happen, someone! Acer is HORRIBLE. Asus products are nothing short of awesome, it's not just the quality (which I have no complaints about whatsoever), it's the amount of features their products have for the price. They're almost the only name in consumer wireless networking right now, with Intel closing down their motherboard business there's just no one else left in the motherboard business and their ROG laptops are the pinnacle of affordable mobile gaming. Acer is a pile of cheap pushover garbage that people buy because they don't know any better.

    Asus and Lenovo? Lenovo is the same junk as Acer or worse at times, their low-end offerings disgust me, the ONLY good thing about Lenovo are their ThinkPad keyboards and *nothing* else. I wish that they, along with HP, Acer, Gateway, eMachines and all other low-quality brands would crumble to dust - sadly, that would severely reduce the competition and mess up the market. But at least don't have any of them merge with Asus! There is NOTHING Asus would get from that deal! Acer has no production lines, no [significant] IP, no significant product series (their junk gets phased out in favor of newer junk quicker than you learn all of their horrible naming conventions). Asus has their own production, ought to have some interesting IP AND a ton of significant products - their motherboards, their networking, their ROG laptops...

    If Asus knows what's good for them, they won't do it. They are JUST starting to become well-known (it's their own fault for not advertising enough for so long) and they can NOT afford to taint their brand name with low quality of Acer. Buy their stock, do some other stuff, but DO NOT MERGE.
  • 0 Hide
    GreaseMonkey_62 , September 23, 2013 7:35 AM
    Interesting that stock prices rose over the rumor even though that aftermath of such a deal would likely pollute both companies and stock prices would fall - in my opinion.
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