Well, I guess the book on this IPO is closed.
Time to buy AAPL?
CUPERTINO, Calif., Sept 2 (Reuter) - Apple Computer Inc.
Tuesday agreed to acquire the core assets of Power Computing Corp., the largest cloner of Macintosh computers, for $100 million.
The deal signals a shift in Apple's strategy away from so-called clone makers, which have made inroads into Apple's business.
Four years ago, Apple decided to give several companies permission to make Mac clones as a way to expand the market for Apple products. Power Computing, founded in 1993, jumped on the opportunity and thrived by selling Macintosh clones that were cheaper than Apple's machines.
But since late last year, Apple executives have had second thoughts about licensing. While the strategy did modestly expand the Macintosh market share, much of it came at an expense to Apple, which could not compete on price with the clone makers.
Apple co-founder Steven Jobs, who is running the troubled computer maker while it searches for a new chief executive officer, apparently was opposed to the licensing pacts and has been looking for a way to halt them or at least prevent the clone makers from taking additional market share away from Apple.
The shift in strategy has angered the clone makers. Two weeks ago Power Computing's president, Joel Kocher, resigned from the computer maker, citing irreconcilable differences with Apple over the right to use Apple's technology.
Kocher had been a loud critic of Apple's about-face. At the Macworld trade show earlier this month, Kocher urged Macintosh customers to demonstrate against Apple to protest its licensing moves.
Under terms of the deal, Apple will purchase the right to retain key employees with expertise in direct marketing, distribution, and engineering, as well as Power Computing's Macintosh customer database and the license to distribute the Macintosh operating system.
Power Computing will retain the Power Computing name and will sell Mac Operating System-compatible computers through the end of the year.
"Power Computing has pioneered direct marketing and sales in the Macintosh market, successfully building a $400 million business," Jobs said in a statement announcing the agreement.
"We look forward to learning from their experience, and welcoming their customers back into the Apple family."
Apple will provide ongoing support to Power Computing customers and Power Computing will continue to provide hardware and warranty service to its customers, it added.
A spokesman for Apple was not immediately available to comment on how the deal with Power Computing will affect ongoing talks with two other clone makers, Umax Computer Corp and Motorola Inc.
Apple's stock gained 75 cents to $22.50 in trading on Nasdaq.
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