Ted Waitt

Explore the life of Ted Waitt (born January 18, 1963), the American entrepreneur who co-founded Gateway Inc. Learn about his business journey, strategic shifts, philanthropy (especially ocean conservation), and lasting influence.

Introduction

Theodore William "Ted" Waitt (born January 18, 1963) is an American billionaire businessman and philanthropist. He is best known as a co-founder of Gateway, Inc., a company that played a key role in the the personal computer boom of the 1990s.

Over time, Waitt has shifted much of his focus from business to philanthropy—especially in areas such as ocean conservation and biological sciences.

This article examines his early life, the rise and challenges of Gateway, his transition into philanthropy, his public roles, and his legacy.

Early Life & Background

• Ted Waitt was born in Sioux City, Iowa on January 18, 1963.

• He grew up in a family involved in agriculture or cattle-related business (his father was a cattle broker).

• He attended the University of Iowa from 1982 to 1984, though he did not complete a degree before diving into entrepreneurship.

His early environment and familial ties to rural business likely influenced his later business approach, notably the down-to-earth branding of Gateway.

Founding Gateway & Business Rise

The Launch & Early Strategy

• In 1985, Ted Waitt, along with his brother Norm Jr. and Mike Hammond, launched Gateway 2000 (initially known as Texas Instruments Personal Computers Network) with a US$10,000 loan guaranteed by Waitt’s grandmother.

• The company began operations on Waitt's father’s cattle ranch in Iowa and later expanded to South Dakota.

• A signature of Gateway’s brand was its "down-home" motif: the computers came in boxes printed with black-and-white Holstein cow spots—a branding that evoked rural familiarity.

Growth & Innovations

• Under Waitt’s leadership, Gateway adopted a direct-marketing model, bypassing or minimizing retail intermediaries to keep costs lower and connect more directly with consumers.

• The company emphasized cost control—limiting overhead, outsourcing manufacturing, and leveraging low tax jurisdictions (e.g. moving its headquarters to a state with more favorable tax laws).

• By the early 1990s, Gateway achieved explosive growth:
  • In 1991, sales reached US$627 million and Gateway overtook Dell as the leading direct marketer. • In 1992, revenues grew to around US$1.1 billion. • In subsequent years, Gateway expanded globally, launched “Gateway Country Stores” (brand showrooms), and diversified into software, services, and Internet access.

Leadership Transitions & Challenges

• In December 1999, Waitt announced he would step down as CEO, handing over the role to Jeff Weitzen while remaining chairman.

• However, the early 2000s proved difficult for Gateway. As competition intensified (especially from lower-cost competitors like Dell), Gateway suffered losses. Waitt returned to the CEO role in January 2001 to attempt a turnaround.

• He executed a "back to basics" strategy: emphasizing individual customer sales and cost discipline.

• In 2004, after Gateway acquired eMachines, Waitt handed off daily operations to Wayne Inouye. Later in 2005, he resigned as chairman, effectively ending his active operational role in the company.

• In August 2007, Acer Inc. acquired Gateway for US$710 million.

Thus, from bold startup to a major PC brand, Waitt’s career in Gateway had high peaks and eventually waning fortunes in a highly competitive industry.

Philanthropy & Post-Business Focus

Once he stepped back from direct management, Waitt devoted increasing energy to philanthropic ventures, particularly those tied to science, environment, and community development.

Waitt Foundation & Related Institutes

• Waitt founded the Waitt Foundation, Waitt Institute, and Waitt Institute for Violence Prevention.

• He has donated tens of millions of dollars, particularly toward ocean conservation and establishing marine protected areas (MPAs).

• For example, the Waitt Foundation has committed funds to sustainable ocean initiatives globally.

• In 2008, he granted US$20 million to the Salk Institute to establish the Waitt Advanced Biophotonics Center, which supports cutting-edge imaging and research.

• Waitt has served on boards of the National Geographic Society and the Salk Institute (including as chairman).

• He is a founding board member of Oceans 5, a coalition of funders aiming to protect ocean ecosystems.

His philanthropic philosophy appears strongly science- and evidence-based: leveraging resources to support infrastructure, research, and ecosystem protection.

Personal Life & Public Profile

• Ted Waitt is married to former model Michele Merkin.

• Previously, he was married to Joan Theresa Peschel, with whom he has four children: Hailey, Emily Rose, Maxwell Griffin, and Sophia Marie.

• He was formerly linked romantically to Ghislaine Maxwell, and their association was reported in media accounts.

• Waitt has been recognized as one of America’s generous philanthropists; BusinessWeek named him among the top 50 for his contributions.

• He holds an honorary doctorate from University of South Dakota.

Despite being a high-profile entrepreneur, Waitt keeps a somewhat private profile, letting his philanthropic and business deeds define much of his public legacy.

Key Traits & Insights

From the arc of his life, some recurring themes and traits emerge:

• Entrepreneurial risk-taking: Starting a PC company from a rural setting with modest capital, using unconventional branding and direct marketing strategies.

• Adaptability: Returning to leadership in times of crisis, reorienting strategy (“back to basics”), and eventually shifting to philanthropy.

• Science and evidence-driven philanthropy: His funding focuses on infrastructure (research centers), conservation, imaging, and ecosystem management.

• Vision beyond business: He has expressed belief that ocean depletion is one of the biggest challenges of his generation.

• Blending humility with ambition: Though he amassed significant wealth, much of his later life has been about giving back and supporting scientific causes.

Legacy & Impact

Ted Waitt’s legacy lies in both his business achievements and his philanthropic footprint.

• In business, Gateway played a notable role in the PC revolution of the 1990s. While it didn’t survive as an independent dominant brand, its strategies (direct sales, branding, cost control) influenced how PCs were marketed and sold.

• In philanthropy, he has contributed to ocean conservation, scientific infrastructure (especially imaging at Salk), and global environmental initiatives—helping catalyze collaborations and research.

• Waitt is a case study of an entrepreneur who, after scaling a business, redirected ambition toward public good, using resources to support long-term systemic projects rather than short-term charity.

His profile is less about flashy headlines and more about the cumulative effects of strategic giving and sustained support for science and conservation.