“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.”