Taiwan-based Acer’s proposed deal to acquire Gateway for $710 million is making news. In the deal, Acer would acquire the Gateway, eMachines and Packard Bell computer brands. The deal would make Acer the third largest PC maker in the world.
It’s a complicated deal and it is uncertain because of possible antitrust scrutiny and a fierce backlash against the deal coming from Gateway shareholders after hearing the news. Not to mention fears by some about what continuing globalization will bring mean for the US economy.
Whether the deal goes through or not, it’s interesting to see Acer propose a high-profile merger after years of pursuing organic growth.
Acer was co-founded in 1976 by Stan Shih. Acer and Shih helped Taiwan move higher up the chain from a country of low-paying mass computer productions. While at Acer, Shih came up for an explanation for why Taiwan needed to change. He called it the Stan Shih smile curve.
Likewise, the most successful software vendors, like Microsoft, have emphasized brand, distribution and marketing to become successful.
