March 27, 1997 11:45 AM PST
Gateway buys bankrupt Amiga
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Gateway believes the acquisition of the German company, an early groundbreaker in multimedia technology, combining computer graphics, animation, and film sequences with stereo sound, will bolster its position with intellectual property and improve its stake in emerging technologies, while rescuing the company from liquidation.
Amiga, a subsidiary of ESCOM AG, is currently in bankruptcy court and Gateway is awaiting regulatory approval to finalize the deal. Terms of the deal were not available while the case is undergoing the approval process.
"This acquisition...will strengthen our intellectual property position and invigorate a company that has been a pioneer in multimedia solutions and operating systems technology," said Rick Snyder, president and chief operating officer of Gateway, in a statement.
Analysts, however, are skeptical that this move will have any significant impact on either Gateway or Amiga.
Although Amiga enjoys a Mac-like niche popularity in Europe, it is unlikely that it will now be heavily marketed in the United States, said Jeffery Baker, an analyst with Principal Financial Securities.
Under the agreement, Amiga will be called Amiga International and its president Petro Tyschtschenko will retain his title and responsibilities of developing new products and markets. Amiga will also operate as a separate business unit of Gateway.
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