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Thursday, March 23, 2006

Alienware Bought By Dell

Dell Inc. confirmed Thursday that it had acquired boutique PC vendor Alienware, a move that will add some zing to the company's image.

Although Dell's acquisition was widely anticipated, Alienware chief executive Nelson Gonzalez said that his company will remain a wholly-owned subsidiary of Dell, continuing its own brand, design, sales and marketing, and support. Terms of the deal were not disclosed.

For consumers, the purchase will mean that Alienware will now access Dell's well-known supply-chain efficiencies, ideally reducing wait times for new PCs that Alienware executives said have swelled to as much as a month or more. Interestingly, the deal also means that a PC containing a processor from Advanced Micro Devices will finally contribute to Dell's bottom line.

The Dell-Alienware deal was first "reported" by a blogger and rival, VoodooPC chief Raul Sood, who predicted that a then-rumored deal would make sense. "Why the potential for a Dellienware and not another? Alienware is widely considered to be the volume leader in gaming, they have scale,"

Being added to the Dell organization also means that the company can take advantage of the Dell supply chain and its relationships to suppliers like ATI, Intel, and Nvidia. According to Vena, customers were being forced to wait up to five weeks for new PCs using the latest technology, a trend that he said should be far easier to buck now that Alienware can tap into Dell's supply chain

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