3/23/2006

Another rumor coming true : Dell to acquire Alienware

From the CNET article Dell to acquire Alienware :

"There will be no cross-marketing of Dell and Alienware PCs on their respective Web sites, at least initially, said Jess Blackburn, a Dell spokesman. Some Dell-branded products that Alienware doesn't sell, such as monitors, might be sold on Alienware's site, but that hasn't been finalized.

The deal gives Dell a chance to tap into the profitable high-end PC gaming market, Blackburn said. The purchase is not material to Dell's finances, he said.

Alienware had considered raising capital through an initial public offering, but came to realize that being acquired by Dell would allow it to raise more money and to take advantage of Dell's supply chain and procurement expertise, Gonzalez said.

"We know our strengths and know our weaknesses, and one of our weaknesses has been supply chain," Gonzalez said. Both companies use direct sales models to reach customers, but Dell is well-known for its efficient manufacturing process."



Will this mean that Dell might abandon its XPS line, as that is in direct competition with Alienware gaming systems? Or they might just want to keep the competition between themselves.

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