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HP to acquire Voodoo PC
Corporate/Events | Reads from WWW
Fri 29 Sep 2006

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CNET News - Voodoo PC has agreed to be acquired by Hewlett-Packard, Voodoo founder and Chief Technology Officer Rahul Sood announced on his blog Thursday.

Details of the transaction were not released. Rahul Sood and his brother Ravi, currently the CEO of Voodoo, will take positions within a new game business unit in HP's Personal Systems Group reporting to Phil McKinney, that group's chief technology officer, according to the posting on Rahul Sood's blog.

Voodoo makes expensive high-end PCs for gamers and PC enthusiasts, often with flashy designs and cases. This is a relatively small portion of the PC market, but it yields higher margins than the mainstream market. Customers of companies like Voodoo, Alienware and Falcon Northwest are thought to wield influence over less tech-savvy friends and colleagues.

Earlier this year, Dell brought Alienware into its company as a wholly owned subsidiary, hoping to learn more about these high-end customers and take advantage of the profits. In the weeks prior to that acquisition, Rahul Sood predicted the looming deal after having similar acquisition-related conversations with Dell Chairman Michael Dell, he later revealed on his blog.

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