Another U.S. company is being bought by a foreign entity. Computer maker Acer of Taiwan has announced that it will attempt to acquire Gateway, the third-biggest U.S. personal-computer company, for about $710 million in cash.
This deal, the latest investment in a U.S. company by a foreign firm, gives Acer the well-known Gateway brand, and more than doubles Acer’s U.S. market share to 11.1 percent from 4.8 percent. Acer is expected to benefit from Gateway’s strong relationship with Best Buy in getting its name additional recognition in the computer market.
The deal must win regulatory and antitrust approvals and, pending those approvals, is predicted to close in December, the companies said. But, come on, how many of these buyouts, purchases, mergers, whatever you want to call them, have you seen rejected? I would lay you odds the deal will go through and another U.S. company will no longer be a U.S. company.
With this deal, Acer also makes a defensive move against larger rival Lenovo. The move by Acer and Gateway will effectively block Chinese-based Lenovo’s planned purchase of Packard Bell by exercising its right to acquire the shares of Packard Bell’s parent company, PB Holding. Packard Bell is the number three company in the European computer market.
“Gateway was the best acquisition on the chessboard for Acer, and it took full advantage,” said J.P. Gownder, principal analyst at Forrester Research.
A chessboard – what an analogy for continuing globalization. But this is exactly what it is. Corporate America and corporate entities around the world could care less about the average consumer as long as their position in the global marketplace is secure. Sure, we get lower priced goods sometimes, but at what price? We continue to ship our jobs overseas, and we continue to allow corporations to act as puppet masters pulling the strings of the world’s economies.