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Intel Selling Majority Stake In Intel Security, 'New' Company To Be Called McAfee (fortune.com) 30

An anonymous reader quotes a report from Fortune: Intel is spinning out its security business with help from private equity firm TPG, as the chip giant focuses more on its top growth opportunities. Intel will collect $3.1 billion in cash and retain a 49% ownership stake. TPG will own 51% of the new company, to be called McAfee. Under terms of the spin off, TPG will make a $1.1 billion equity investment in McAfee, which will also take on $2 billion of debt. The deal is expected to close in the second quarter of 2017, Intel said. The deal ends Intel's sometimes tumultuous efforts to add cybersecurity software features to its various semiconductor chip businesses. It also marks a near-final coda to Intel's $8 billion purchase of McAfee in 2010. Analysts and investors have favored disposing of the business, which they said didn't add much to the chip sales and was too dependent on the shrinking PC market. The unit reported $1.1 billion of revenue in the first half of the year, up 11% from the same period of 2015, and operating income of $182 million, a 391% jump. Chris Young, who joined Intel's security unit from Cisco Systems in 2014, will be CEO of the new company. Intel said it still plans to collaborate with McAfee to add security features across its product lines.
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Intel Selling Majority Stake In Intel Security, 'New' Company To Be Called McAfee

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  • by bezenek ( 958723 ) on Wednesday September 07, 2016 @06:39PM (#52843927) Journal

    Thinking the security future is PC-based is short-sighted at best. Security in the future is going to be about hand-held devices, moving data (between devices, cloud, etc.), and the small, connected devices we like to call the Internet-of-Things.

    These markets will make the PC security market looks small.

    • by zlives ( 2009072 )

      and that is different from today how exactly? unless i am mistaken intel is not focused on PC only silicon either.

      • by bezenek ( 958723 )

        From the article:

        "Analysts and investors have favored disposing of the business, which they said didn't add much to the chip sales and was too dependent on the shrinking PC market."

        In shared computing environments (the cloud) and in small-form-factor networked computing (IoT), creating new security mechanisms which may require hardware/software co-design is the future. The statement above pretty much ignores this, hence my comment.

        The sort of thing I am referring to is already present in hard

  • by tlambert ( 566799 ) on Wednesday September 07, 2016 @06:40PM (#52843935)

    Pretty sure this is just a thumb in the eye for John McAfee suing Intel to get commercial use of his name back.

    • It'll never happen. People lose control of their names all the time, especially in the fashion industry. Look at Kate Spade. She made a big brand under her name, but then sold out to a giant megacorp. That megacorp owns her name now, and she has to start hew new fashion line under the name Frances Valentine.

      John thinks he'll win the lawsuit because, like so many other people in Silicon Valley, he's arrogant and thinks the rules of every other industry don't apply to tech.

  • ... or, at least it's only part of what the new McAfee will be offering.

    They're also planning to launch a new line of hallucinogenic rectal bath salts.

  • Well so much for John getting his name back!

    I'm kind of bummed about this, I had a small hope that Intel could turn this product around but spinning it back out will kind of kills that dream. It's not that I have any love for it, but I have customers that use it so I'm stuck dealing with it in my job.
    • John will just have more fun at their expense.

      As I speculate upthread, it might be illegal for McAfee to buy out of the money puts based on knowledge of his future behavior. But considering the global nature of stocks and McAfee's being unencumbered by excessive (any) respect for laws, I think he can likely get the bets down pseudo anonymously in one stock exchange or another.

      The key question is: How many points will McAfee Security stock be moved by a trip to Carnival in Rio if John really gets a wild

  • Making a point to revive what was arguably one of the worst "security" systems ever foisted upon the computing public... priceless. (D'oh!)
  • by Aryeh Goretsky ( 129230 ) on Wednesday September 07, 2016 @10:09PM (#52844989) Homepage

    Hello,

    Intel had been investigating selling Intel Security (nee McAfee) for well over a year, so this is hardly a recent development on their part. And regardless of what the Slashdot crowd things of the products' quality, they do have massive amounts of brand recognition in both the consumer and enterprise spaces.

    Mr. McAfee had given up the rights to his name when preparing McAfee Associates' IPO and did quite well in terms of how he was compensated. Even back in 1995 he was already trying to get his name back from Bill Larson (then President, CEO and Chairman of McAfee Associates) and having no luck. As much as Bill hated the McAfee name, he realized there was so much money to be made in it, and took the company from $20-30M in revenue to billions of dollars in valuation .

    Mr. McAfee's one of the smartest business people I know, and his ability to rapidly absorb data, synthesize it and come up with all sorts of ideas for products is pretty darn amazing, and frankly, with all of the time and effort he's put into being in front of the media, trying to get his name back at this point is a waste of time and shareholder's money spent on lawyers: Due to his recent high-profile activities, there's enough interest in Mr. McAfee that he doesn't need to capitalize on his name, anymore. He could name a company "Spicy Lemon" and still generate media attention because of his involvement with it, just as he's done with all the products he's taken on since returning to the U.S. after fleeing Belize.

    Regards,

    Aryeh Goretsky

  • McRipoff has been over priced and sold to fail over and over as the numbers never meet expectations 3 or 4 time now. At some point people will learn, but then again P. T. Barnum had it right a long time ago. Crappy invasive software that slows your machine to a crawl in the name of protection that it will get right about 80% of the time.

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