Intel to buy security co. McAfee in $7.68B deal

[Mak 2.0]

Intel to buy security co. McAfee in $7.68B deal - Yahoo! Finance

Intel Corp. said Thursday it is buying computer-security software maker McAfee Inc. for $7.68 billion as the chip-maker adds to its arsenal of tools to serve an increasing array of Internet-connected devices, including mobile phones.

The $48-per-share price represents a 60 percent premium over McAfee's Wednesday close of $29.93. McAfee shares surged 58 percent after the deal was announced Thursday to hit $47.14 in morning trading. Intel shares slipped 59 cents, or 3 percent, to $19.


Intel, which is based in Santa Clara, Calif., said security is now a fundamental component of online computing, but today's approach to security isn't adequate for the growing availability of Internet connections on mobile phones, medical devices, ATMs, automobiles and elsewhere.
The industry needs a new approach that combines software, hardware and services to meet tomorrow's needs, the company said.


"With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online," Intel CEO Paul Otellini said. "In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences."

 

[mqudsi]

Everyone's saying its pretty crazy. According to the financial tech analysts, most of the huge corporations have literally billions of dollars of cash stockpiled and they (also literally) aren't sure what to do with it. They're already spending as much as they can on R&D and on PR/Marketing, and tech buyouts are a nice outlet for all that cash.

Except in in this case, no one knows why Intel would be a mediocre software company that is way past its prime. McAfee may be huge, but it's outlook has been consistently downward. I recall 10 years ago when McAfee was the biggest AV company or just about (depending on the day, Symantec came 1st or 2nd). But now?

I wonder what Peter has to say about this!

 

[Terry60]

I can't see a rosy future for a company that charges for a product you can get elsewhere for free, but I guess Intel must think they have some worthwhile assets ?
I was going to say, "a company that large can't be as stupid as it would seem", but after the domino toppling of the past couple of years, it's obvious that the self-paid, multi-millionaire finance directors of our FT100 companies are all complete morons. (or rather, we're the morons for letting them reward themselves so generously at our expense for such appalling performance)