Very interesting. Gateway's making a big bet on this, as they are not exactly in a strong financial position to be making acquisitions. They have had 12 consecutive quarters of losses, which has been weakening their balance sheet. It is interesting that Waitt is stepping aside and handing the CEO reins to the head of eMachines. eMachines has at least been able to turn a profit, and doing it at the low-end of the market, which requires some cost discipline that apparently Gateway has not been able to master. If they execute properly, this could be a good move - highly risky, but Gateway needs to take bold steps to turn their business around.
Here's hoping they can pull this off (without eroding their high-end efforts)! [And no, I don't own the stock. But I am a customer.]
