Chip Maker Intel to buy Security
Firm McAfee for $7.68 Billion
Intel Corp. is trending today due to its announcement Thursday that it is seeking to by McAfee Inc. a computer security software firm for an astonishing $7.6 billion. Intel has traditionally manufactured micro-circuit chipsets for personal computers.
However this announcement and subsequent dayTrending topic represents Intel's new approach to online security as they begin a push for growth in the mobile, medical, ATM and automobile embedded hardware devices. "The Industry needs a new approach that combines software, hardware and services to meet tomorrow's needs." a spokes person for the chip leader explained.
McAfee stock's price-per-share promptly shot up and closed out at $48
over 60 percent gain from Wednesday's previous day close at just under $30. Intel conversely slipped about 3 percent to right at $19 per share, based on the same news.
"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," Intel CEO Paul Otellini said. "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."
Traditionally, Intel is a conservative company avoiding too much dabbling outside of its core manufacturing computer components, this signals a new era. This is a huge acquisition, even for the Chip Giant and has many investors second guessing this new direction for Intel.