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Intel to buy McAfee for $7.7 Billion

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Re: Intel to buy McAfee for $7.7 Billion

#23
post #10
post #6

Earlier quoted context omitted.

My guess is that they will be able to use their existing OEM relationships to push for McAfee to be installed by default (and paid for, not just a trial) on more and more computers. McAfee also seems to be moving into different areas of computer security lately (PCI scans, etc), so it's not just anti-virus. I am not sure what % of their business this is though.

I thought unwanted default installs are the only way McAfee ends up on computers anyway.

And corporate sales (writing this from a corporate PC with McAfee installed).

At least it's not obnoxious.

Re: Intel to buy McAfee for $7.7 Billion

#26
post #8

Earlier quoted context omitted.

McAfee do more than just desktop antivirus: for example, they have mobile, virtualisation and network security products. see products by category here: http://www.mcafee.com/uk/enterprise/index.html Intel has a large interest in mobile, virtualisation and network arenas; this isn't really as surprising as you make out.

McAfee also has strong UI programming expertise that Intel sorely needed. Intel's IPP and MKL libraries are absolutely great, but VTune looks like it is fresh out of 2002. They get access to several stable revenue streams (like antivirus), and can cherry-pick talent to work on whatever projects they want. There aren't many downsides for Intel.

[deleted]

Re: Intel to buy McAfee for $7.7 Billion

#27
post #14

Earlier quoted context omitted.

AV eats CPU cycles, Intel sells CPU cycles. That do ?

Lots of stuff eats CPU cycles, Intel surely cannot acquire all of it.

How many other products make everything else on the computer substantially slower?

Re: Intel to buy McAfee for $7.7 Billion

#28
post #8

Earlier quoted context omitted.

McAfee do more than just desktop antivirus: for example, they have mobile, virtualisation and network security products. see products by category here: http://www.mcafee.com/uk/enterprise/index.html Intel has a large interest in mobile, virtualisation and network arenas; this isn't really as surprising as you make out.

McAfee also has strong UI programming expertise that Intel sorely needed. Intel's IPP and MKL libraries are absolutely great, but VTune looks like it is fresh out of 2002. They get access to several stable revenue streams (like antivirus), and can cherry-pick talent to work on whatever projects they want. There aren't many downsides for Intel.

7.7 Billion dollars for UI design?

It seems strange that Intel is investing in this particular sector that leverages mostly Windows stuff. They should move out of Steve Ballmer's basement and make their own OS.

Why do they want to make software for platforms when their competencies are on hardware?

One that doesn't look like a antivirus program for Windows.

Re: Intel to buy McAfee for $7.7 Billion

#29

Earlier quoted context omitted.

McAfee also has strong UI programming expertise that Intel sorely needed. Intel's IPP and MKL libraries are absolutely great, but VTune looks like it is fresh out of 2002. They get access to several stable revenue streams (like antivirus), and can cherry-pick talent to work on whatever projects they want. There aren't many downsides for Intel.

We're talking about $7.7 billion . I'm not sure it's quite as rosy a picture as you paint. I'm not that familiar with McAfee's annual profits, but even if they make $500 million a year, we can value the talent they cherry-pick at an absurdly high value of $1 billion, and it would still take Intel well over 10 years to recoup the investment, assuming stable revenue streams.

$173 million in 2009, up from $172 in 2008 and $166 in 2007. It seems odd to make an assumption when the real answer is seconds away!

Re: Intel to buy McAfee for $7.7 Billion

#30

Earlier quoted context omitted.

McAfee also has strong UI programming expertise that Intel sorely needed. Intel's IPP and MKL libraries are absolutely great, but VTune looks like it is fresh out of 2002. They get access to several stable revenue streams (like antivirus), and can cherry-pick talent to work on whatever projects they want. There aren't many downsides for Intel.

We're talking about $7.7 billion . I'm not sure it's quite as rosy a picture as you paint. I'm not that familiar with McAfee's annual profits, but even if they make $500 million a year, we can value the talent they cherry-pick at an absurdly high value of $1 billion, and it would still take Intel well over 10 years to recoup the investment, assuming stable revenue streams.

http://online.wsj.com/article/SB1000142405274870447610457543...

Intel's stock only took a small dip, and it looks like some of those who left were shifting it to McAfee to ride the wave as the stock went up.

That's a lot of investors in an otherwise volatile market not jumping ship, so they must see something good in the deal that we're missing.

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