Intel Buys McAfee for Five Billion
Friday, August 20th, 2010The security antivirus sector has undergone a major shake-up with the news that Intel, the world’s largest computer chip manufacturer, has bought McAfee for $7.68 billion (£5 billion).
The logic behind the deal, which has come as a surprise to most investment analysts and also to many within the security antivirus sector, is to take a new approach to fighting cybercrime. Intel plans to build security features within the microprocessors that are used to power computers and smaller devices such as mobile phones.
Intel have deep pockets and have offered $48 cash per share for McAfee stock which represents a 60% premium on the McAfee pre-deal share price. Not surprisingly McAfee shares jumped 58% on the news of the bid and the price being offered.
And even though the two companies had been working together for over a year, the deal still caught many unawares. Although both company Boards approved the deal, the takeover will have to be passed by shareholders of both companies and the US regulatory authorities.
Should the deal go ahead – and few see any major problems – the first few products of the amalgamation will be introduced early in 2011.
As the bidder and the ones coughing up the cash, Intel’s shares off 4% to 18.84 US cents.
The BBC was one of many media organisations to run the story and the editor of PC Pro Magazine was one of many who were surprised at the news:
“Intel does buy a lot of companies and it does have a lot of more cash than anyone else out there. So it making a big acquisition isn’t a surprise, but you may have thought it more likely to buy another hardware firm. No doubt Intel is looking ahead and seeing that the laptop and desktop market are probably past their heyday and the big growth area is mobile.
“For a company like Intel, it’s nowhere near as strong in the mobile area as it is in the laptop and desktop areas, so it’s probably looking for new ways to get streams and revenues in the future. Perhaps that is Intel’s point of view but not everybody else’s. The reaction from investors has been quite negative.”
Experts now say that the deal will be a major re-arrangement of the computer antivirus sector, with some firms now feeling on the back foot as McAfee gets access to the sharp end of the industry.
Guest Article by Neil Camp


My name is Alan Potts and I'm the Editor of the Antivirus-BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 








