Intel Eyes Buying McAfee

August 20th, 2010 at 10:22 am

Intel Corporation, the leader in the manufacture of computer processors today, is on its way in acquiring online security company McAfee. The acquisition deal is said to reach an incredible $7.68 billion. The said deal currently stands as Intel’s biggest ever acquisition in its 42-year history.

Intel has previously already have software business acquisitions in the past and McAfee may be the first one that focuses on online security. With the world slowly becoming wired and the online networks getting bigger and bigger with more and more devices and gadgets entering the game, maintaining stable security in an online environment seems to become an even greater concern. The increasing importance of online security may be the underlying reason why Intel decided to acquire McAfee.

In the said deal, according to reports, McAfee will retain its current business structure despite becoming a subsidiary of Intel. The security firm may continue operating the same way as it once was focusing on minimizing the threats on cybersecurity and cyber-terrorism.

Intel plans to buy common stock shares of McAfee at $48 per share. This can be quite a deal for McAfee since their shares usually average around the $30 range. In addition, when the news of the acquisition came out, McAfee’s shares surged to to around the $47.

But on the other hand, Intel’s own stock shares suffered a dip as investors worry about Intel trying to veer away from its main strength business-wise, that of manufacturing microprocessors. Some even has their own misgivings to the deal, questioning whether Intel really did need to acquire McAfee even when they already had a strategic partnership in place. Intel may still be able to accomplish its objectives with the McAfee partnership without having to shell out more money as it did with the McAfee acquisition. How all these will work out eventually may not be that clear for now. It may be too early to tell whether the new deal will work out good or bad for both companies.


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