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Taiwan-based computer manufacturer Acer has some big plans to storm the top tiers of global PC companies with its announced acquisition plans of Gateway. Gateway, for those who don't remember, is based in Irvine, California, but started out on a farm in the Midwest. The acquisition plans call for Acer to purchase all outstanding shares of Gateway at $1.90 a share, putting the net total of the proposed merger at approximately $710 million. The Acer/Gateway plan, pending all the usual standard closing conditions on a deal of this size, could be done by the end of the year. The proposed …

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Gateway currently holds about a 6% to 8% market share of PC sales in the US, and derives about 80% of its income from PC sales. After a lengthy period of unprofitability, the company has recently shown improvement, but is it enough to maintain its independence as a corporate entity? [url=http://news.com.com/2102-1003_3-5866796.html?tag=st.util.print]Cheryl Mayer[/url] at News.com thinks not. Recent changes in direction for the company have see it acquire eMachines, close it's chain of retail stores and adopt the practice of selling its PCs through retail chains instead. Gateway focuses on sales to consumers, and has not had much success in selling …

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