Gateway was founded in 1985 by Ted Waitt and Mike Hammond in South Dakota. Initially starting as a company that sold computers directly to consumers, Gateway quickly gained popularity in the 1990s and became one of the largest PC manufacturers in the United States. The company was known for its innovative marketing strategies and for providing high-quality products at competitive prices. After facing challenges in the 2000s, including competition from larger firms, Gateway was acquired by Acer Inc. in 2007, and it continues to operate as a subsidiary.