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Intel Looking To Future In Pricey Deal For McAfee

New York Times, Friday, August 20, 2010 10:46 AM

Ashlee Vance writes that Intel's $7.68 billion acquisition of the anti-virus software marketer McAfee, as flummoxing as it might seem to investors today, should be viewed as a long-term strategic deal that will give the chipmaker access to more security specialists and the ability to hardwire the tools into its chips.

"Eventually the software features will get embedded in the hardware. So maybe this is an expensive way for Intel to acquire domain expertise," says Rodman & Renshaw analyst Ashok Kumar.

Intel wants to go after the smartphone and consumer electronics segments, which are dominated by rival chip designs that are less expensive. McAfee will operate as an Intel subsidiary, reporting to Renée J. James, the head of Intel's software and services group.

Read the whole story at New York Times »

m&a, technology

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