Rumor: Dell to Buy Out Alienware?

A rumor has been circulating regarding Dell buying the Alienware brand of desktop and notebook PCs. The CEO of Voodoo Computer started this rumor based on a blog post. Our guess is that, if true, something regarding this will be announced or formalized at either the upcoming Game Developer's Conference or the E3 gaming expo.

In a blog post this past week Rahul Sood, the CEO and founder of Voodoo PC (view a profile we did on Voodoo PC here), speculated about Dell buying out Alienware and why it would make sense. In his post Rahul brings up many good points supporting his theory:

"Dell + Alienware = Dellienware. Is it possible? Yes, at least I think so. I won't get too far into details as to why I believe this is going to happen, but I will offer some of my thoughts. Even though Dell has never been known to make acquisitions, times are changing and so is their brand positioning."

(link to ful post http://voodoopc.blogspot.com/2006/03/dellienware-will-aliens-get-abducted.html)

Basically, the reasoning behind a Dell buyout of Alienware would be the fact that Alienware has built a brand that is recognized as and associated with high-end gaming machines and they also have a "cool" factor. Dell has tried with its XPS line to generate this same cool factor, and have actually done adecent job, but the XPS brand is not on the same level as an Alienware, Voodoo or Apple type of brand appeal. By buying Alienware, Dell would be able to sell high-end gaming machines under this label and keep it seperate from the more mainstream Dell Inspiron and Dell Dimension PCs.

Dell is definitely trying to gain image and brand appeal and prevent itself from stagnating. One example of this is theconcept Dell XPS M2010 portable entertainment/gaming system they displayed at the CES 2006 show in January.

Webelieve that Dell could be announcing something big either at the Game Developer's Conference this March 20th in San Jose or at the E3 in Los Angeles this May, and it's going to be one of three things.

1. Dell is going to release the the XPS M2010 and it isn't just a concept
2. Dell is going to buy Alienware and use that brand to sell high-end notebooks and PCs
3. Both 1 and 2

Stay tuned!

Related Links:

• www.dell.com
• www.Alienware.com
• http://voodoopc.blogspot.com/2006/03/dellienware-will-aliens-get-abducted.html

 

Just had to post this.



http://www.theinquirer.net/?article=30043

 

I can't really put much faith into this article. 1. The article mentions the word 'Blog.' 2. Blog has affiliation with a rival company. 3. Dell won't get into bed with AMD.

If it was real, it would be good news.

 

If it were true, I'm not sure how wise an acquisition that would be seeing as how Alienware's rep has been a bit sullied as of late. The only advantage I could really see would be allowing Dell to gradually dip it's toes into the AMD market pool, as the INQ mentioned.

 

Analysts say that Dell's going to have AMD based PCs soon.

 

I'm not convenced. Dell seems to say 'No.' everytime they are asked directly.

 

I don't see Dell selling rebranded computers. IF they bought Alienware, I would think they would make their own line with the Alien name.

 

I can see Dell selling Alienware under its own name. But, I also can't see Dell selling Clevos.

 

I would think that if Dell bought Alienware, they'd leave it be - HP bought out Compaq (or "merged"), but left Compaq its own company (but there is the fact that almost every Compaq has a similar/almost identical HP counterpart).

 

Unfortunately it doesn't always work that way. I would hope they would. But I am cautious. Dell buying a smaller company like Alienware represents the equivelent PC world of when AOL/Timewarner bought the Turner network IMO. They did not leave each networks seperately incharge of one another.

 

VERY interesting news story to say the least!

 

Nice post Andrew.

I won't believe it until I see it in a formal statement. Rahul Sood of VoodooPC isn't a guy I like to trust.

 

Nice post indeed.

Dell + Alienware = Crapware

Be afraid, be very afraid if alienware tech support works with DELL tech support

*Seb faints at the thought of this combi*

 

Dell + Alienware = Dellienware

Weak name...thats for sure!
Not happening...

 

That sounds like it would be an improvement over AW's current tech support.

I still don't believe it though. I mean come one. It's from the opposing company's head hancho's Blog.

 

Actually it's dell is expected to have AMD based servers soon. That is a very different thing. None of the credible "analysts" actually think they'll get mainstream AMD desktops anytime soon.

My guess is they will wait until the Conroe generation and look at their situation again.

 

An improvement for the worse and they gonna bring such a respectable company as DELL down with them

 

Dell buying out Alienware now thats a thought. *cough* *cough*. I'll believe it when I see it.

 

There is a good chance it could happen. But...i still doubt it

 

Actually, I see something rather positive if this "Dellienware" acquisition goes through. Instead of the market being clogged with two brands of PCs I refuse to buy, there will be just one. I vote "Aye!!!"

 

Never say never. When I heard eight months ago that Palm would make a handheld device that ran a Windows OS and not Palm OS I laughed and said such a thing would be ludicrous. Now I'm using a Palm Treo that runs Windows, jokes on me. You never know, it's not that far fetched.

 

Wow...interesting news indeed...

 

My next laptop might be an Alienware (Assuming this is true)

 

It makes quite alot of sense to me, it adds up.

Then again, lots of things in life adds up, never happens though

Although, if Dell did buy Alienware, maybe their CS could be better

 

Think of it this way: Now that if Dell owns AW, you can get coupons for the AW

 

I suspect Rahul wishes Dell would buy them but I don't think it will happen. Dell already has a boutique line and they already (to some degree) cater to gamers. Maybe if all Dell had was business notebooks they'd be interested in Alienware. But to buy them now? Makes no sense at all.

My guess is Rahul is putting the idea out there in the hopes someone at Dell would consider it and to get the free publicity.

 

dell has no interest in buying actual AW... they could just as well rebrand clevos on their own, if anything theyd turn AW HQ into a depo for souteaster US and just put those "Powered by AW" stickers on their own stuff

 

This sort of news is no surprise to me. Think about it. Alienware has been lining itself up for a buyout by reducing its operations thus resulting in a lower standard of quality and repair delays like users have been posting. They've been advertising like crazy these past few years to make their brand recognized everywhere and get it in peoples' faces despite how annoying I find it to see packaged in a game I buy.

Dell took its coupons off the market temporarily, redesigned their website, and rolled out the XPS "brand" of computers all within the past year. They've also made some major policy changes like warranty terms and support. They also started doing conceptual things and started paying more attention to their image as well with the XPS systems. They have made some major changes to the way they do business and are adjusting their business model.

In tradition with the way other companies take each other over, I could easily see the #1 Dell taking over the most recognized gaming computer brand in the industry. If you ask someone what a Sager is they don't normally know. If you ask them what an Alienware is they know what that is. Thus, as Dell continues to refine its image and update its business model, a change like this imminent. Dell wouldn't have to sell AMD's, but its child company Alienware could. They could remain independent.

AW also updated their website within the past year and the buying experience (minus the whole phase fiasco) is very similar online. The two companies are very similar, almost too similar. I'd imagine talks about this have already been underway. When Sears was taken over by Kmart, months before the information became public Sears changed its logo to add a Kmart red swoosh and sold off its credit card company to downsize itself. This is what businesses do to buy/sell each other, and it makes sense AW and Dell are going to play that game too.

 

lol i wonder if dell will fix my screen

 

i hope they do merge...then i'd only have one company to talk bad about

 

Why not? Dell sells Compals. They don't make their own laptops...they just have assembly facilities(since the machines are customizeable). The designs and actual production is sourced by an outside vendor. Clevo, Asus, Compal, MSI, Arima...any of those could be making the Dell's of tomorrow.

 

Does anybody else feel like this is hyundai buying out daewoo here?

 

hehe This article I believe was first posted on theInq, which is notorious for their lack of ... hmm, what's the word, accuracy and/or honesty when it comes to reporting...

On top of that:

1) Dell has just publicly stated that it has no intention to pick up AMD as a supplier, so even if they want to expand in that direction, it would not be in the immediate future.

2) Dell's core business is huge multi-million dollar, multi-year business service contracts. Alienware's business at best will make an insignificant contribution to Dell's bottom line. Will Dell forgo their long-term exclusive relationship with Intel, Quanta, etc? All for probably an insignificant boost to their earnings... I think it's highly unlikely.

If Dell should acquire anyone, maybe they should look into buying Apple Computers. That would actually be kinda neat... Heck since their own MP3 player is an utter bust, might as well buy up the competition... lol

cheers,

yass

 

Why does everyone here dislike Rahul so much? He seems like a great guy to me! I wouldn't mind buying a voodoo in fact (I've known two owners of his desktops)

I think the alienware desktops are definetly better than dells and I think a buyout could be a good thing..maybe. Also I think dell should use AMD for its servers and desktops at least.

If they did buyout alienware they shouldn't change much imo except the service issues I keep hearing about from owners

 

I personally think Dell is too smart to make such a blunder.. after all all AW does is take some clevo and shov the latest and most incompatible hardware into it and add some bonus features like pyro-works so that you can see your laptop catch on fire and display wonmderful colors.. or even keep you warm on a cold night.

The only positive aspect would be to gain AW customer base, which is probablt less than what Micheal Dell spends on his dogs... so it really makes no sense. Why would they want to buy out something that has worst customer reviews and is on the verge of extinction...

 

what most ppl doesn't seeem to realise, is that the only thing valuable in Alienware, is *NOT* the hardware -- the generic hardware + a fancy coat of paint doesn't = value. What is valuable in this case, is the Alienware NAME. It is quite well known(for good or bad), and that in itself is worth something.

As the previous poster noted, the only reason that Dell might have in buying Alienware is for the brand-name. Maybe to capitalize on that small market segment. But again, becuse it is such a small market segment, I really don't think Dell's even gonna bother...

cheers,

yass

 

A lot of you seem to assume that if Dell were to buy up Alienware they would continue using Clevo machines and AMD products. However, what if that wasn't the case? What if Dell were to buy up Alienware and switch over to a new ODM and new parts. Also, keep in mind that Alienware could still operate as a child company of Dell therefore they could have AMD products at Alienware while dell would stay Intel. That would go along with what Dell people have been saying about not incorporating AMD.

Also, look at the similarities of the top of the XPS line vs. that of the Alienware machines. See the LED's, big screens, and lots of power under the keyboard? Let's not forget that Dell beat Clevo to the punch on releasing the most powerful gaming machine a year ago. Dell is certainly competing in this arena. XPS is also shifting to become a Media Center brand now instead of strictly a gaming system. Thus, it's logical to think that Dell would be looking to replace their gaming systems, previously known as XPS, with those of something like Alienware.

While I think it's a stupid idea since I hate Alienware, it might be something the corporate people are thinking about. In this age corporate people will do anything if someone dangles a dollar sign out infront of them regardless of whether or not it'll pay off.

 

I wonder IF this does happen, if Alienware will sell out or not. If Dell took control and combined the two companies, that could make for some really great machines. Think about it Dell is good at making desktop gamming machines. I mean with that 4.0+GHz beast with quad graphics cards they are releasing. They are also really good at making laptops. Alienware's little venture into the laptop world hasnt seemed to turn out so great for them. But their PC's, though they may not be the absolute best out there, they provide very high-end gamming to consummers. If dell played their cards right, they could have one big bad titan of a company. If they took responsability for service, that would solve that problem. Just my view point.