John Hui and Gateway Complete Full Circle of Interactions
Released on = October 2, 2006, 9:11 pm
Press Release Author = Lap Shun John Hui an experienced executive and serial entrepreneur who builds great companies.
Industry = Computers
Press Release Summary = Lap Shun John Hui an experienced executive and serial entrepreneur who builds great companies.
Press Release Body = Lap-Shun Hui, a well known visionary entrepreneur in the PC industry with a very successful track record in the cutthroat Personal Computer business wanted to buy the retail division of Gateway, Inc. for approximately $450M USD. However, Gateway has expressed no interest whatsoever to date in John Hui's offer, even though Mr. Hui pioneered the model for selling low margin PCs to consumers and built a powerhouse company in the process, eMachines, which Gateway subsequently purchased in June of 2004.
According to John Hui, the Retail business should be separated from the Professional and Direct businesses, as each of these business models has a unique and distinct business model and burdened cost structure associated with it. Lap Shun John Hui believes that this new direction of breaking out the Retail business is the right strategic course of action for Gateway to pursue, if it wants to grow and survive in the very challenging Personal Computer retail business.
According to John Hui Gateway's executive management team is not ready to constructively engage in discussions with him and they have rejected his offers to date. And, they have retained the investment banking firm of Goldman Sachs to help them investigate and/or pursue other strategic directions that might be beneficial to the company
2012
