Dell announced that it has entered into a definitive agreement to acquire PC maker Alienware. Terms of the planned purchase will not be disclosed. Alienware is a PC maker of gaming and multimedia computer systems. 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 in the press release.
“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 in the press release. “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.”
This is the first acquisition by Dell of a fellow computer maker. “Dell meanwhile has become synonymous with basic, inexpensive boxes. The world’s largest computer makers has been pushing its XPS line in an attempt to gain a foothold in the high end PC market,” Tom Sanders reports for vnunet. “Dell’s financial performance has been under pressure in recent quarters as the firm struggled to sell computers in the high performance segment and had to witness how the majority of its sales shifted to inexpensive systems.”
“High end systems offer higher profit margins than the volume business that Dell is best known for. The volume segment furthermore is facing fierce competition from Asian manufacturers. Rahul Sood, chief executive of Alienware competitor Voodoo PC first hinted at the pending deal three weeks ago in a blog posting. He pointed out that high end PC makers were challenging Dell’s ‘perceived technology leadership’ which could ultimately undermine its position in the consumer market. He also argued that the rise of Apple had stolen Dell’s spotlight as the trendsetter for the PC business,” Sanders reports.
Full article here.
MacDailyNews Take: Dell’s XPS line not cutting it? Interestingly, Alienware does offer AMD-based PCs, while Dell has thus far resisted using processors from any company other than Intel.
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butt ugly
Yeah, Jonathan Ives is really scared of Alienware. The way Porsche was scared of some guy who painted Frank Frazetta-style scenes of the side of your Chevy van.
Mike G,
Nobody said anything about Ive being scared of Dell + Alienware. MDN are saying that this is what Ive’s nightmares must look like after a bad plate of late night Chinese food.
MacDailyNews,
Great headline and illustration! LOL!
I usually don’t do this… but…
First post.
What? Absolutely nothing for nearly 42 minutes and then all the posters post in seconds? Or is there some sort of odd business going on?
Ah!
“The management and founders of Alienware will continue to operate the company as a standalone unit of Dell.”
Yea, right. How long do you think THAT will last?
Alienware will soon be history, resistance is futile.
Looks like good ole M. Dell took a page out of Microsoft’s book. If at first your stuff doesn’t succeed (XPS line), buy a smaller, successful company.
Too bad for Alienware and it’s customers.
Peace.
Waiting for the rectal probe now……
I’d like to know some of the details of this deal. It sounds like Alienware was coming up short on cash so they whored out their brand name to Dell, saying that it will help them beat Apple(???).
Onwards and upwards pc dweebs.
Here’s Dell’s “ultimate” 3D gamer system.
• XPS 600 Renegade with a overclocked 4.26 GHz dual core Pentium 965 Extreme Edition
• Four GeForce 7900GTX graphics processors
• Ageia PhysX ‘Physics Processor’ add-in card
• 30-inch 3007WFP display, resolution of 2560×1600
• Firepainted case.
• RAID O pair of 150 GB 10,000 RPM RaptorX’s
• only $9,930
Cover is swung to the side in picture.
Oh the XPS 600 has 7, (seven) proccesors total.
But a Mac Quad will blow the doors off it CPU processing wise. But one doesn’t need a lot of CPU with games which are heavily GPU bound.
That’s too bad. Alienware was one of the few PC builders that I’d heard good things about. Yeah, they’re ugly but in a good way. Oh well. The PC world just got a little more mediocre.
Another bad news for consumer. But no effect on Mac user!!!
HP bought Compaq. Bad…..
Adobe bought over Macromedia. Bad…….
Now, Dell bought over Aliens, worst……..
What’s next?
I want to see; Apple acquires Adobe. Apple acquires Adobe. Apple acquires Adobe. Apple acquires Adobe.Apple acquires Adobe. Apple acquires Adobe. Apple acquires Adobe. Apple acquires Adobe. Apple acquires Adobe.Apple acquires Adobe. Apple acquires Adobe.Apple acquires Adobe. Apple acquires Adobe.
APPLE ACQUIRES ADOBE!!!!!!!!!
Good form, MDN. The title is a riot.
I really don’t understand why Dell needed to buy Alienware. Those computers are made entirely of generic PC parts.
What exactly is Dell buying? I must be missing something.
First post! Eat that bitches!!! YEAH!!
Ive always looked to Alienware as the PC alternative to apple, but now this has happened I dont know what I will do…
Alienware will lose a significant amount of business, they dont think so, but people buy from Alienware because its “different”… well not so much no more.
they are buying a name brand that is well recognised by PC gamers. I assume they will leave the boxes with Alienware brand on them as otherwise there is absolutely no point.
If you where a hardcore gamer on PC you’d understand.
I cant really figure though. I bought a PS2 or get someother console to play games.. why spend a fortune even a XBox 360 would be better though bring on the PS3 yet who could wait
> First post! Eat that bitches!!! YEAH
Eat your self, Joop. U didn’t read at all before u post!
Yea, right. How long do you think THAT will last?
Alienware will soon be history, resistance is futile.
—
Uh, believe it. Dell is trying to buy a good business, not destroy one. It knows damn well the hardcore *snicker gamers will sneer at anything named Dell.. so why would they plaster their name all over everything.. ?
In other words, Dell will not kill its latest acquisition.. it will go on .. but pretend to compete against Dell XPS..
you know.. ‘choice’..?
That photo and caption are hilarious.
Alternative photo caption: Alien vs. Predator
I should add: Whoever wins… We lose.