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Intel Swallows up McAfee in £5 Billion Deal


Intel Swallows up McAfee in £5 Billion Deal

Intel has announced that it is to buy McAfee, the security software company, in a deal worth approximately $7.68 billion (£4.9 billion). The world’s biggest chip company will purchase all of McAfee’s common stock for $48 a share, in cash. McAfee will become a wholly owned subsidiary of Intel, reporting into Intel’s Software and Services Group.

Intel explained the move in a statement, saying that it would enable Intel to become a one-stop-shop for security hardware and software, making it better able to protect businesses and consumers. The company said that security was now as important internally to it as energy efficiency and connectivity, a move influenced by the reality of billions of devices connecting online.

"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," said Paul Otellini, Intel president and chief executive in a statement. "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.

"The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the Internet safer and more secure," Otellini added.

"The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month," added Dave DeWalt, president and chief executive of McAfee. "We believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience."

The coming together is pretty much a done deal, save for McAfee shareholder approval and unspecified regulatory clearances, though we imagine these are formalities.

Link: Intel.com

Link: McAfee.com

Go to comments


August 19, 2010, 8:08 pm

<p>I can understand this as a business decision: I'm sure McAfee software will net Intel plenty of revenue. But as a competent PC user, I can only feel scorn for this move, because I know McAfee is no better (and is in many ways worse) than the free alternatives.<br><br><br><br><br><br>Intel has earned my respect in recent years with their excellent products. This doesn't help - McAfee's whole marketing campaign (like Norton's) revolves around convincing/scaring inexperienced users that they need their product, when they don't. As for trying to uninstall McAfee once it's got its claws into a PC...</p>


August 19, 2010, 8:15 pm

<p>shame McAfee isn't, to put it nicely, amazing at AV. <a href="http://www.av-comparatives.org/images/stories/test/ondret/avc_report26.pdf" rel="nofollow">http://www.av-comparatives.org...</a><br><br><br><br><br><br>Microsoft Security Essentials all the way :)</p>


August 19, 2010, 8:31 pm

<p>Hugo: &amp;quot;Microsoft Security Essentials all the way :)&amp;quot;<br><br><br><br><br><br>I second that motion!</p>


August 19, 2010, 8:38 pm

<p>Another MSE fan. <br><br><br><br><br><br>That said, I doubt Intel wants McAfee for selling standard boxed AV. It seems more likely to me that it will a) try and integrate core level AV into their chipsets and b) use their dominant market position to get Intel partners to bundle McAfee with their computers therefore using the tried and trusted Microsoft model of how to dominate a sector by force.</p>


August 19, 2010, 9:14 pm

<p>I agree: MSE is great.</p>


August 19, 2010, 9:46 pm

<p>Avira antivirus - the free version!</p>


August 20, 2010, 1:57 am

<p>McAfee Virus signed up for &amp;pound;5bn. They saw intel coming that's for sure :-)<br><br><br><br><br><br>I wouldn't have McAfee in a gift. In fact I delete any McAfee products because they are generally so bad.<br><br><br><br><br><br>Yet another reason to avoid Intel....</p>


August 20, 2010, 4:39 am

<p>Wasn't there a story a little while back whereby Intel were going to build antivirus directly into their chips...if such a thing is possible...</p>


August 20, 2010, 6:38 am

<p>RT @adrianmw75: Intel CEO: &amp;quot;We need antivirus, can someone buy me McAfee?&amp;quot; Few hours later: &amp;quot;Done.&amp;quot; &amp;quot;Great, which version?&amp;quot; &amp;quot;Version ... ?&amp;quot;</p>

Denis iii

August 20, 2010, 11:37 am

<p>MSE FTW!<br><br><br>I have to support Mcafee AV at work and it is awful. PC's getting infected all the time even though useless spyware module is also installed. We had to configure mcafee to max protection to prevent further infections which essentially blocks everything making the PC a pain to use. There support is useless, 2months of uninstalling re-installing mcaffee products and repeating myself again and again and again all the way to 3rd line until they finally listened to what I said, connected and located ONE incorrect reg value (left behind by old mcaffee product!)to fix. Don't even get me started on EPO!<br><br><br>But if anyone can fix Mcafee Intel can, they will need to totally overhall the software but to start definately focus on replaceing mcafee's inhouse culture of uselessness with intels culture of excelence!</p>

Chris Beach

August 20, 2010, 4:28 pm

<p>Don't understand this aquisition at all...unless Intel have some enterprise class av hardware/software. Or as someone mentioned av on a chip? Only thing I can really see is that Mcafee have some patent on some kind of detection/smart algorithim that Intel want.<br><br><br><br><br><br>Like most people I delete McAfee and Norton as soon as possible(well as soon as you can uninstall all their incideous parts). And Intel doesn't exactly have a presence in the consumer software market, though I know their compilers etc are well regarded.</p>


August 23, 2010, 3:39 am

<p>This can only be part of a wider software strategy by Intel. I personally feel McAfee is an awful fit, and a maker of dire software to boot! Lets just hope the move makes for a better McAfee, not a worse Intel.</p>


August 23, 2010, 11:43 pm

<p>I used Avast! (Free edition) and ClamAV on less powerful computers for the past few years. I've encountered many threats and security risks and virus's, but Avast! has caught every single one of them. I haven't been infected in years.</p>

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