Editing AST Research (section)

==Decline and sale (1994–2001)==
{{pic|AST Computer logo.svg|Later logo of the company, as AST Computer}}
By the mid-1990s, AST had severe problems in the highly competitive PC market. According to ''[[The New York Times]]'', AST's prospect shrunk due to the strategy of offering premium models in an increasingly competitive personal computer market, while [[Compaq]] and other top manufacturers slashed prices in direct competition with the cheapest clones.<ref>{{cite journal |title=Samsung Electronics Plans to Buy the Rest of AST Research |page=3|last=Fisher|first=Lawrence M. |date=January 31, 1997 |newspaper=The New York Times |url=https://www.nytimes.com/1997/01/31/business/samsung-electronics-plans-to-buy-the-rest-of-ast-research.html|archiveurl=https://web.archive.org/web/20131004233222/https://www.nytimes.com/1997/01/31/business/samsung-electronics-plans-to-buy-the-rest-of-ast-research.html|archivedate=October 4, 2013}} {{ProQuest|430720286}}</ref> [[Samsung]] paid $378 million for 46% of AST in 1995, providing badly needed funding. Sales grew slightly in fiscal year 1995 but the company lost $99.3 million. In August Tandy, which provided 18% of revenue, said that it would sell IBM computers in its [[Radio Shack]] stores.{{r|miller19950917}} Revenues for 1996 were $2.1 billion, down from 1995 revenues of over $2.3 billion.<ref name="Samsung in bid">{{cite web | title=Samsung in bid to buy all of ailing AST | first=Elaine | last=Chen | date=February 3, 1997 | work=Electronic News | publisher=Reed Business Information | url=http://findarticles.com/p/articles/mi_m0EKF/is_n2153_v43/ai_19102218/ | url-status=dead | archive-url=https://web.archive.org/web/20060327052859/http://findarticles.com/p/articles/mi_m0EKF/is_n2153_v43/ai_19102218/ | archive-date=March 27, 2006 | access-date=August 28, 2017 | via=FindArticles}}</ref>

In 1997, AST Research was wholly acquired by Samsung.<ref>{{cite journal |last1=Miller |first1=Greg |title=Samsung Set to Acquire AST Research |url=https://www.latimes.com/archives/la-xpm-1997-04-15-fi-49002-story.html |access-date=November 26, 2022 |journal=Los Angeles Times|page=D1, D4|date=April 15, 1997|archiveurl=https://web.archive.org/web/20190331201630/https://www.latimes.com/archives/la-xpm-1997-04-15-fi-49002-story.html|archivedate=March 31, 2019}} {{ProQuest|421321856}}</ref> At the time, Samsung owned 46&nbsp;percent of AST and had offered to buy the remaining common shares.<ref name=":1" /> Prior to this move, Samsung had already owned a substantial stake and provided considerable financial support to keep AST going. By December, the number of employees was down to 1,900. In 1999, Samsung was forced to close the California-based computer maker after a string of losses and a mass defection of research talent.<ref name="Samsung in bid"/><ref name=":1">{{cite web|url=https://www.cnet.com/news/samsungs-bid-for-ast/|title=Samsung's bid for AST|access-date=August 28, 2017 |date=January 30, 1997|work=CNET|publisher=CBS Interactive|archiveurl=https://web.archive.org/web/20220801021224/https://www.cnet.com/tech/tech-industry/samsungs-bid-for-ast/|archivedate=August 1, 2022|url-status=live}}</ref><ref>{{cite web|date=January 20, 2011|last=Song|first=Jung-a|author2=Christian Oliver|url=http://www.ft.com/intl/cms/s/2/65e04374-24b5-11e0-a919-00144feab49a.html|title=Samsung buys Dutch group in return to M&A|website=Financial Times|access-date=August 28, 2017|archiveurl=https://web.archive.org/web/20170118223114/https://www.ft.com/content/65e04374-24b5-11e0-a919-00144feab49a|archivedate=January 18, 2017}}</ref><ref name=":0">{{Cite book|last=Cain|first=Geoffrey|url=https://books.google.com/books?id=fTgLDQAAQBAJ&pg=PA379|title=Samsung Rising: The Inside Story of the South Korean Giant That Set Out to Beat Apple and Conquer Tech|date=2020-03-17|publisher=Crown|isbn=9781101907269|pages=100–101|language=en}}</ref> Samsung had invested US$1&nbsp;billion in the company.{{Citation needed|date=December 2022}}

The AST trademark was sold to [[Beny Alagem]], co-founder of [[Packard Bell]], on January 10, 1999; Alagem also gained an exclusive license to the company's intellectual property. The deal was estimated at around $200 million in value according to one person familiar with its details.<ref>{{cite news |last1=Carlton |first1=Jim |title=Ex-Packard Bell CEO Agrees to Buy Samsung Group's AST Computer Unit |url=https://www.wsj.com/articles/SB916013568919015000 |access-date=December 31, 2022 |work=The Wall Street Journal |date=January 11, 1999 |page=A30 |id={{ProQuest|398862247}}}}</ref><ref>{{cite news |last1=Harrison |first1=Linda |title=Troubled AST finds new owner |url=https://www.theregister.com/1999/01/11/troubled_ast_finds_new_owner |access-date=December 31, 2022 |work=[[The Register]] |date=January 11, 1999 |archive-url=https://web.archive.org/web/20041124040723/http://www.theregister.com:80/1999/01/11/troubled_ast_finds_new_owner/ |archive-date=November 24, 2004 |url-status=live |language=en}}</ref> Alagem additionally invested $12.5 million<ref>{{cite news |last1=Lai |first1=Eric |title=US buyers pick up piece of defunct AST Research |url=https://www.scmp.com/article/268716/us-buyers-pick-piece-defunct-ast-research |access-date=December 31, 2022 |work=[[South China Morning Post]] |date=January 12, 1999 |archive-url=https://archive.today/20230101054343/https://www.scmp.com/article/268716/us-buyers-pick-piece-defunct-ast-research |archive-date=January 1, 2023 |url-status=live |language=en}}</ref> into the formation of AST Computers, a separate, "Internet-driven" [[joint venture]] based in [[Los Angeles]], with Alagem holding a 65 percent stake and Samsung holding a 35 percent stake;<ref>{{cite news |title=Samsung Sells AST Brand of Computers |url=https://www.nytimes.com/1999/01/12/business/international-business-samsung-sells-ast-brand-of-computers.html |access-date=December 31, 2022 |work=[[The New York Times]] |agency=[[Bloomberg News]] |date=January 12, 1999 |orig-date=Dated January 11, 1999 |archive-url=https://web.archive.org/web/20150220092643/https://www.nytimes.com/1999/01/12/business/international-business-samsung-sells-ast-brand-of-computers.html |archive-date=February 20, 2015 |url-status=live |page=C6 |id={{ProQuest|431118383}}}}</ref><ref>{{cite news |title=Packard Bell's Alagem Buys AST Research |url=https://www.latimes.com/archives/la-xpm-1999-jan-11-fi-62428-story.html |access-date=December 31, 2022 |work=Los Angeles Times |agency=Times Wire Services |date=January 11, 1999 |archive-url=https://web.archive.org/web/20230101061033/https://www.latimes.com/archives/la-xpm-1999-jan-11-fi-62428-story.html |archive-date=January 1, 2023 |url-status=live |page=2 |id={{ProQuest|421358663}}}}</ref> however, the venture failed to gain traction as the computer market slowed in late 2000, becoming moribund by 2004.<ref>{{cite news |last1=Spooner |first1=John G. |title=Big Blue news a sign of PC market's graying temples |url=https://www.cnet.com/tech/computing/big-blue-news-a-sign-of-pc-markets-graying-temples/ |access-date=December 31, 2022 |work=[[News.com]] |publisher=[[CNET Networks]] |date=December 3, 2004 |archive-url=https://web.archive.org/web/20041207051629/http://news.com.com/Big+Blue+news+a+sign+of+PC+markets+graying+temples/2100-1003_3-5476706.html |archive-date=December 7, 2004 |url-status=live |language=en}}</ref> Meanwhile, Samsung restructured the original AST as ARI Service<ref>{{Citation |title=Agreement of Merger |date=June 23, 2000 |publisher=[[Secretary of State of California|Office of Secretary of State of the State of California]] |url=https://bizfileonline.sos.ca.gov/api/report/GetImageByNum/019208000118172195054182153038246043145112010014 |id=Control ID {{abbr|No.|Number}} LBA29038791 (Legacy No. D0624875) |format=PDF}}</ref> to support its existing products until it was dissolved on February 28, 2001.<ref>{{cite web |title=Homepage |url=http://www.ari-service.com/ |website=ARI Service |publisher=AST Research |access-date=December 31, 2022 |archive-url=https://web.archive.org/web/20000409000745/http://www.ari-service.com/ |archive-date=April 9, 2000}}</ref><ref>{{Citation |title=Certificate of Dissolution of ARI Service, Inc., a California corporation |date=February 28, 2001 |publisher=Office of Secretary of State of the State of California |url=https://bizfileonline.sos.ca.gov/api/report/GetImageByNum/194046249099135150231241109179041245251055032072 |id=Control ID {{abbr|No.|Number}} LBA20434881 (Legacy No. D0644284) |format=PDF}}</ref>