Dell to Buy Alienware?

The rumours that Dell is planning to buy leading gaming PC hardware specialist Alienware gained ground again today, with Dell cancelling a sneak preview press event it had originally planned to hold at next week’s Games Developers Conference in the U.S.A.

The rumours started some time back and gained creedence when VoodooPC founder and president Rahul Sood posted this article here on his personal blog about a possible pending Alienware/Dell deal. Mr Sood, whose company is one of Alienware’s major competitors (it has to be said) also wrote up the article in more detail in Custom PC Magazine.

As Mr Sood said in the original posting, “Even though Dell has never been known to make acquisitions, times are changing and so is their brand positioning.”

He goes on to note that, “The PC gaming market is threatening Dell’s “...perceived technology leadership” – and ultimately the consumer space. The Alienware brand is cooler than Dell, and perhaps a likely candidate for Dell to take over based on size alone.”

And paying a backhanded compliment to Alienware, Sood observed: “I can't fault my competition for single-handedly taking on a giant. Though I believe it changes their brand position I think they have had Dell in their crosshair for years.”

As for what Dell gets from such a deal, Sood is “...not sure about the move for Dell, but I am sure that Steve Jobs is God according to Wall Street, Hollywood, and every mainstream publication – and I think Michael Dell wants to change that.

It is also very clear what Mr Sood would get from such a deal – the de-valuing of the Alienware brand amongst the PC gaming faithful should it be bought out by Dell could only mean a corresponding increase in value for Sood’s own VoodooPC brand.

All of this has of course inspired considerable rumour-mongering in the tech sector. Alienware have consistently refused to comment, with the party line being, "Alienware can not and will not comment on any speculative stories such as the one that appeared on Rahul Sood’s blog. While we do believe that the story is ultimately a strong positive reinforcement of the Alienware brand and the company’s success, we will not comment on speculation or potential future events. As always, Alienware is committed to offering consumers and businesses with the best high-performance, innovative PC products on the market and we remain manically focused on that goal."

Well, that’s all very well and good. But once a rumour like this gains critical mass you either have to put up or shut up, we’re afraid. And when your potential buyer who also happens to be a dull, corporate PC brand with no ‘mindshare’ in the hardcore gaming market pulls out of the Games Developers Conference for no apparent reason, then it is fair to say that the rumours are going to resurface and that current and future/potential customers, partners and employees are going to want some answers.

Over on CNet yesterday, they reported that while “...no word has been officially released from either Dell or Alienware, we heard from a reliable source this morning that the purchase has indeed gone down.”

CNet’s source was a contact at a high-end vendor who requested anonymity, claiming that two of his company's suppliers confirmed that the deal has been done. He also claimed that his company has received an influx of CV’s from Alienware employees.

CNet’s line is this, with which SPOnG pretty much concurs: “[Dell] owning a subsidiary that sells AMD-based systems could be an easier path…toward reclaiming the performance crown, rather than incorporating Athlons or Semprons into its current Intel-exclusive assembly line.”

We'll keep you posted with more news when we get it directly from Alienware or Dell. Clearly nothing is definite until we hear it from a reliable source who is happy to go on record. Meanwhile, we’re off to leave some more voicemail messages.