Intel Buys McAfee for 7.68 Billion Bucks

Not too sure what Intel wants to do with this purchase. Steinnon has some great analysis on this.

From GLGroup here:

One argument put forth by analysts so far is that by acquiring a market leading anti-virus software company Intel will be able to add security features to their core business, chips. $7 billion dollars is a lot to pay for technology when there are 27 such technology companies, that would cost less to acquire

Intel is not going to accomplish brand enhancement by acquiring McAfee. Intel already has one of the most recognized brands in all of technology and they have no negative perceptions because of a lack of security association.

Intel is already entrenched in all aspects of state, local and federal government in almost every country in the world with their ubiquitous CPUs. Intel needs no help getting government business.

At $7.68 billion this is the biggest acquisition of a pure play security company ever. It is also the worst. There is no synergy, no channel benefits, marginal revenue enhancement (considering the price), no new markets, and no meaningful strategy.

I’ve got friends at McAfee, so congrats to those guys. McAfee actually had a security strategy and this was shown via their careful selections of technology for acquisitions and mergers over the past several years. If those guys that drove this strategy are allowed to formulate the Intel merger for their business, I think McAfee will continue to thrive and succeed.

Or, the company will be dwarfed by the Intel brand and vision and the McAfee brand will ultimately wither and go away. We’ll see which way that goes.