News: Intel buys McAfee for $7.68B (1 Viewer)

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TheForce

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Intel claims it will still work with other security software but they plan to add security at the chip level on future intel processors in 2011.

Sounds interesting.

McAfee stock was up 58% this morning while Intel lost 3.5%
 
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riffjim4069

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This acquisition was surprising considering McAfee has been the one gobbling up security vendors like: Reconnex (DLP), Webwasher (content filtering), Security Computing (Sidewinder firewall), and others. Intel must have really wanted them (Strategically) because they paid a 60% premium to purhcase McAfee. Most people don't realize this but a number of corporations cut their spending so drastically and reduced their operations to "bare bones" levels the past couple years that they now find themselves sitting on huge amounts of cash because the economy wasn't as bad as predicted. They have to give it back to shareholders or invest in growing wealth for the company. I think you'll see a lot more acquisitions the rest of the year. Hopefully they'll also start hiring once again (just need leadership and a business friendly attitude from Washington). Strategically, I don't know what to make of this purchase since it took me by surprise. I was never a big fan of McAfee, but it seems like they have been headed in the right direction the past couple years. We shall see...
 

diogen

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McAfee is one of the worst anti-virus/malware products and therefore (probably) cheap.
AV-Test.org · Tests of Anti-Virus- and Security-Software

I think Intel plans to play a bigger role in the tablet market (MeeGo deal with Nokia) and needs some security software incorporated (targeting enterprises, probably).
Built into their chips? And buying an outfit certainly beats developing it from scratch in-house. Especially if the price is right...

Diogen.
 
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diogen

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TheForce

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Thanks, ramy for the title fix. Typing too fast again. :(
"They have to give it back to shareholders or invest in growing wealth for the company. I think you'll see a lot more acquisitions the rest of the year. Hopefully they'll also start hiring once again (just need leadership and a business friendly attitude from Washington). "

I'd love to comment on this but it would move us into the subject of politics and that is forbidden so lets just stick to the debate on technicals, OK?

I have McAfee on my Dell laptop and it seems to run fine. Never had a virus on it. The only antivirus software I ever tried that slowed my computer to a crawl was Norton. Mostly I use AVG, both free on the lesser used computers and the full paid suite for my main surfing computer. It's OK but I have had some trouble with spyware and other trojans over the years. AVG isn't perfect and my latest gripe with it is the Yahoo toolbar and Search engine takeover.

I'm actually excited about having the antivirus software on the chip level. Hopefully that will solve the virus from taking over your OS and browser. My question is more in the line of subscriptions. Do you all think Intel is planning to offer the daily updates to the hardware virus lists through a paid subscription service? I haven't heard any additional reports on the how of this move, only that they plan to do the hardware approach. Also, what about AMD? If Intel does this, AMD will have to compete. Who will they buy?
Personally, I just bought back into AMD because their stock is at bargain lows now. I also have some Intel in my retirement account. I think both of these companies are pretty solid but they do seem to follow each other's lead.
 

FunkyBoss

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... they now find themselves sitting on huge amounts of cash because the economy wasn't as bad as predicted. They have to give it back to shareholders or invest in growing wealth for the company. I think you'll see a lot more acquisitions the rest of the year. Hopefully they'll also start hiring once again ...

As an Intel shareholder, I'd rather have seen the cash come back to me. :p

I also agree that we're going to see more acquisitions in the future. Problem is, this will mean more layoffs as companies get rid of redundant positions after acquisitions. So I think it might mean even more folks out of work.
 

TheForce

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Funkyboss- Most agree that the time is right for businesses with large accumulated profits to spend it on acquisitions. The reason is stocks, especially the tech stocks are a bargain right now. If the P/E were higher say in the 40's+ rather than in the low 20's, we might see companies return the cash in dividends.
Intel, at least pays a small dividend and it is quite safe. I, too have been picking up small amounts every time it suffers a pull back. I was hoping it would break through its ceiling but the market has stagnated since April. Maybe this acquisition will help push Intel through the ceiling because at least they bought a company that brings a whole new technology to Intel's core line. Once that happens we can take some profits.
 

riffjim4069

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I just noticed HP purchased ArcSight yesterday (after recently acquiring 3PAR), which pretty much does goes along with Intel buying McAfee last month. Quite a few companies still have a lot of cash on hand, and they'll have to either spend it or give it back to shareholders. Anyway, is Symantec the next security company in line to be purchased? Stay tuned...
 

riffjim4069

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Thanks, ramy for the title fix. Typing too fast again. :(


I'd love to comment on this but it would move us into the subject of politics and that is forbidden so lets just stick to the debate on technicals, OK?

I have McAfee on my Dell laptop and it seems to run fine. Never had a virus on it. The only antivirus software I ever tried that slowed my computer to a crawl was Norton. Mostly I use AVG, both free on the lesser used computers and the full paid suite for my main surfing computer. It's OK but I have had some trouble with spyware and other trojans over the years. AVG isn't perfect and my latest gripe with it is the Yahoo toolbar and Search engine takeover.

I'm actually excited about having the antivirus software on the chip level. Hopefully that will solve the virus from taking over your OS and browser. My question is more in the line of subscriptions. Do you all think Intel is planning to offer the daily updates to the hardware virus lists through a paid subscription service? I haven't heard any additional reports on the how of this move, only that they plan to do the hardware approach. Also, what about AMD? If Intel does this, AMD will have to compete. Who will they buy?
Personally, I just bought back into AMD because their stock is at bargain lows now. I also have some Intel in my retirement account. I think both of these companies are pretty solid but they do seem to follow each other's lead.
Absolutely no politics intended. Anyway, I think my perspective in different than most on this forum since I am currently the exterprise security architect for a 74,000 seat network and I have been running enterprise security operations for networks ranging from 65K-84K and/or classified networks from 1-3K. While products like AVG may be fine for home and small business use, they are woefully inadequate for large-scale endpoint security. Regardless, I'm not sure what AMD is doing...but I wouldn't be surprised if someone like Microsoft or Cisco were looking at Symantec. With HP on a "buying" spree I wonder if Dell is going to follow suite?
 

navychop

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Yep. I'd say you have a completely different perspective. And expertise we'll no doubt tap again in the future.
 
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