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Inter@ctive Week: Gateway/Transmeta: Log Rolling Du Jour

Jun 12, 2000, 15:11 (0 Talkback[s])
(Other stories by Larry Dignan)

"Gateway (www.gateway.com) said last week it will use Transmeta chips in a new line of Internet appliances being developed with America Online (www. aol. com). Gateway and AOL will also use Transmeta's Mobile Linux operating system instead of Windows in the appliances. The twist: Gateway and AOL are both Transmeta shareholders."

"Many folks took the Transmeta deal to mean Windows/Intel's influence is waning, but it is more likely a case of major investors ensuring a big initial public offering windfall down the line."

"If you follow the money, the Gateway-AOL-Transmeta pact appears to be part of a package deal. Start-ups typically issue shares on the cheap so they can boast about a high-profile customer. Gateway was among the first to step up to the plate as an investor/customer."

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