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Intel to acquire security firm McAfee for $7.68 billion

By Jos ยท 23 replies
Aug 19, 2010
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  1. In a rather surprising announcement, Intel today revealed it plans to acquire antivirus company McAfee in an all cash deal worth $7.68 billion. That equates to $48 per share, a 60% premium over McAfee's Wednesday closing stock price of $29.93. The deal should help Intel serve the security needs of customers through a combination of hardware and software, particularly in the mobile and embedded segment, where it has struggled to expand its presence as more devices such as smartphones, televisions, medical equipment, and ATM machines go online.

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  2. JMMD

    JMMD TechSpot Chancellor Posts: 840   +6

    wow, I did not see that coming.
  3. Burty117

    Burty117 TechSpot Chancellor Posts: 3,469   +1,254

    Intel, if you want your future products to counter viruses, why choose a company that has a product that can't even catch a lot of popular ones?
  4. kyosuke

    kyosuke TS Rookie Posts: 47

    What? Talk about a move out of nowhere, this is more surprising than Microsoft's Bipolar battery
  5. TomSEA

    TomSEA TechSpot Chancellor Posts: 3,093   +1,545

    What burty117 said - McAffee routinely rates in the bottom half of security software. Not to mention it is colossal bloatware. The only people who use it are those who through no fault of their own, simply don't know any better.

    And what a weird move by Intel.
  6. TorturedChaos

    TorturedChaos TechSpot Chancellor Posts: 821   +29

    Have to agree its kinda a WTF move on Intel's part on both cases. Really came outa the blue there, and they didn't pick a very good security company either.
  7. LNCPapa

    LNCPapa TS Special Forces Posts: 4,271   +520

    The Enterprise version of their security software is actually pretty decent - and not very heavy on a system at all. I'm still kind of dazed about the purchase though.
  8. Julio Franco

    Julio Franco TechSpot Editor Posts: 8,195   +1,257

    Agreed with everyone, including Papa, I have heard excellent things about the enterprise grade software that they have. On the consumer side though, bloat all over, at least that was the case until a couple of years ago when I got rid of their AV suite for good.
  9. To put it more simply than what has been said, McAfee is fail. Perhaps Intel's aquisition will change that... who knows.
  10. PanicX

    PanicX TechSpot Ambassador Posts: 648

    It's likely that Intel isn't purchasing McAfee for their lack luster security suite, but instead to leverage their market share and patent portfolio. It'll also allow Intel to use any current licensing agreements McAfee has already contracted.

    Whats odd to me is the amount they're overpaying for the company. A 60% premium doesn't seem necessary, particularly since the arrival of Microsoft Security Essentials, I'd think most AV's would be lucky to not be bought out under value.
  11. Hmmm. Intel seems to be ramping up on buying new technologies. As big as they are, for some reason, I can't see them moving outwards towards other markets like they probably would like to do. Also, even if they integrate AV protection into your hardware, you still need to update through the net....

    As for the price they paid? HOLY crap! Then again McAfee did make $2 Bil in revenue last year which is way more than I would've guessed. I thought no one gave a crap about them.
  12. Makes me glad I'm an AMD user!
  13. tonylukac

    tonylukac TS Evangelist Posts: 1,376   +72

    A lot of money for something you can get for free. Ignorance is bliss, I guess, and that goes double.
  14. tonylukac

    tonylukac TS Evangelist Posts: 1,376   +72

    This is like the logic in AOL buying Netscape.
  15. Regenweald

    Regenweald TS Rookie Posts: 143

    Crappy or not, Intel now has an enterprise security solution to punt to enterprise customers. In corporate business, silly decision makers often choose a crappy solution backed by a big name rather than something that actually works. Intel is just spending money to make money. Business.
    Microsoft Security Essentials Beta for this desktop user.
  16. Rick

    Rick TS Evangelist Posts: 4,512   +65

    Internally, Intel uses Symantec...

  17. AfricanTech

    AfricanTech TS Rookie Posts: 69

    Weird - oh and their corporate offering isn't much better than the consumer offering - it has good management tools but it definitely slows machines down more than better competition (eg Kasperskly, Nod32)
  18. grvalderrama

    grvalderrama TS Booster Posts: 204   +10

    Come on, have nothing to do if it's a good antivirus, they only do it because it's profitable. It's all a stockholders' move... It's always that way and it'll ever be that way.
  19. PanicX

    PanicX TechSpot Ambassador Posts: 648

    not for long.
  20. Intel = dumb

    Why? McAfee is the most targeted anti virus to bypass. When a hacker creates a virus, adaware, spyware, malware, root kit, ect. McAfee is the first program they make sure they dont show up on. Number two is Norton.

    IF Intel was smart.... They would try to partner with NOD 32.
  21. auwingr

    auwingr TS Rookie

    Intel purchases McAfee, then Texas Instruments "cable modem" division?
    Wow...that just blows my mind. What are we missing here?
    I can understand that they see tremendous potential in the mobile phone security area, but cable modems? Do they still make those things?
  22. Not dumb at all.

    1. Now they have a software they can tune specifically to work with their CPU more efficiently then with other brand name CPU. Thus improving their sales of CPU and AV Software even greater.

    2. Hire people that will make software even better and fire the once that are simply milking the company.

    In the end when the pieces of the puzzle come together it will make sense. Just wait till 1st Quarter next year.
  23. grvalderrama

    grvalderrama TS Booster Posts: 204   +10

    Agree with guest, I suppose that if you have the rights arguments to say that it's a dumb idea, then you would probably be working for Intel by this time...
  24. captaincranky

    captaincranky TechSpot Addict Posts: 14,695   +3,847

    As far as I know, Comcast is alive and well with cable internet. Um, that uses modems. So does DSL. Besides direct connection to the internet is not built into the computer. In either case, a manufacturing company geared up for manufacturing this type of product, should be light enough on its feet to retool for the "next great connection solution".

    If you can get and stay connected to the internet via mental telepathy, you should keep quiet about it. The government might lock you up and experiment on you.

    If you think about, Texas Instruments uses microprocessors in all aspects of their business. The largest chip maker in the world buying into that, gee, that's really stupid isn't it?

    "It Blows my mind"! Where did you dig up that relic? I lived through the hip era, and even I haven't used that in over 30 years. Talk about things that are no longer needed, that went out with bell bottom jeans. (That is, the first time that bell bottoms went out).

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