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Intel buys up security firm McAfee for $7.7 billion

Written by Andre Yoskowitz (Google+) @ 20 Aug 2010 1:17 User comments (10)

Intel buys up security firm McAfee for $7.7 billion Intel announced early this morning that it was acquiring security firm McAfee for $7.7 billion, in an effort to expand outside of its core semiconductor business.
The company paid a hefty premium for McAfee, $48 per share, an almost 60 percent boost from McAfee's closing price on Wednesday of almost $30 per share.

Paying in all-cash, the deal represents Intel's largest acquisition, ever.

Intel chips are currently used in about 80 percent of all the world's PCs and servers, and McAfee will help improve the security of the chips.

Additionally, Intel will continue to sell McAfee's mainstay security software to individuals and enterprises, adding another revenue stream.

Intel did make it clear, however, that any joint products from the companies would not be available until 2011.

"Everywhere we sell a microprocessor, there's an opportunity for a security software sale to go with it,"
says Intel CEO Paul Otellini. "It's not just the opportunity to co-sell, it's the opportunity to deeply integrate these into the architecture of our products."

McAfee had $1.93 billion in revenue last year while Intel had over $35 billion.

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10 user comments

120.8.2010 4:04

"Intel chips are currently used in about 80 percent of all the world's PCs and servers, and McAfee will help improve the security of the chips."

LOL...LOL...LOL Again! McAfee makes Norton look good...and you want to put their awful code right into the CPU circuitry? So much for intel's performance lead...

220.8.2010 5:33

Yea their stock went down after this buy and no fucking doubt it would. It's like trusting a stranger with the keys to your house, and honestly I'd rather trust the stranger than install McAfreak, way to go Intel! And just after losing that lawsuit with AMD to boot, being forced to playing fair now, this should if nothing else help AMD get on the ball if they market right.

320.8.2010 7:31

Yeah...if I had the cash on hand, I would be buying AMD stock this morning.

Trusting McAfee is more like trusting a junkie that has robbed you in the past, and who tries to stab you as you let him in the door (McAfee installs spyware during install).

420.8.2010 11:04

LMAO, damn junkies

520.8.2010 12:12

I'm embarrassed to work for an Intel Chanel Partner right now. We at the shop I work for have done everything we can to convince our customers to NEVER trust Norton, McAfee, or CA for their security needs. What the fuck, Intel!?!?!! I feel betrayed....

620.8.2010 13:06

I too am disappointed with the announcement. I used to use McAfee's antivirus until I got tired of the blue screens of death and the bloated software. I have not seen anything in the last few years to make me change my mind. I think that Intel may regret this acquisition.

720.8.2010 13:18

The day Intel integrates McAfee into their chip is the day I refuse to ever buy Intel again.


820.8.2010 23:47

Originally posted by ThePastor:
The day Intel integrates McAfee into their chip is the day I refuse to ever buy Intel again.


Don't be so hasty; I'm sure it will be a huge failure that gets removed quickly. If not, then you don't have to worry about buying Intel chips anymore, because it won't even be an option once they go out of business.

921.8.2010 16:27
lissenup2
Inactive

Originally posted by KillerBug:
"Intel chips are currently used in about 80 percent of all the world's PCs and servers, and McAfee will help improve the security of the chips."

LOL...LOL...LOL Again! McAfee makes Norton look good...and you want to put their awful code right into the CPU circuitry? So much for intel's performance lead...
Agreed! Actually, couldn't agree more.

Now.......When I read this article it made me think of one thing............a former architecture professor of mine in college that had this really cool and unique (yet strange) Mongolian looking Hersheys kiss-shaped house with a blue square, ugly-assed house next to his that he bought from the owners just so he could tear it down because it made his house look bad and brought his property value down.

Maybe Intel will shut McAfee down as they are an internet and computer nuisance. Absolute CRAP and I recommend all users remove McAfee immediately and get AVG if they're cheap and don't want to pay for anything.

1022.8.2010 3:14

I like kaspersky how bad is it for a AV/firewall app?

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