Cybersecurity Giant Re-Emerges: McAfee is Back

Jonathan Ziarko

Six years ago, Intel took a big leap when it bought up McAfee, a powerhouse in creating computer security software, for $7.7 billion.[1] Intel took that company and turned it into Intel Security, but throughout the past few years as computer sales have slowly been dropping the company is beginning to switch directives to the cloud-based data centers.[2] On September 7, 2016, Intel announced its plans to sell 51% of Intel Security’s shares to TPG for $3.1 billion.[3] Intel saw an opportunity to make some money by selling the majority share in Intel Security to TPG and rebranding it back to McAfee. The sale will allow Intel to focus on other things while still giving them a stake in the cybersecurity industry. Christopher Young, the Senior Vice President and General Manager of the current Intel Security Group, announced in an open letter to the shareholders, that Intel and TPG are working together to hopefully create the “largest independent, pure-play cybersecurity companies in the industry”.[4] Mr. young continued on to speak to the company’s shareholders, consumers, and partners outlining his continued goals towards excellence in the field of cybersecurity and his hope to re-establish McAfee as one of the most trusted names in the industry of cybersecurity.[5] An industry that will only continue to grow. Intel of course will retain a 49% share in the new company.[6] The deal has not yet been closed but it is looking like it should close sometime in mid-2017.[7]

 

[1] Michael J. de la Merced & Quentin Hardy, Intel Sells a Majority Stake of Cybersecurity Unit to TPG, The New York Times Company (Sept. 7, 2016), http://www.nytimes.com/2016/09/08/business/dealbook/intel-sells-a-majority-stake-of-cybersecurity-unit-mcafee-to-tpg.html?ref=technology.

[2] Id.

[3] Stephanie Condon, Intel, TPG to form jointly owned cybersecurity company called McAfee, ZDNet (Sept. 7, 2016, 21:29 GMT), http://www.zdnet.com/article/intel-tpg-to-form-jointly-owned-cybersecurity-company-called-mcafee/.

[4] Letter from Christopher Young, Sr. Vice President & Gen. Manager, Intel Security Group, to Intel Security Stakeholders (Sept. 7, 2016), https://newsroom.intel.com/wp-content/uploads/sites/11/2016/09/CY-Letter-090716.pdf.

[5] Id.

[6] Id.

[7] Micheal J. de la Merced & Quentin Hardy, Supra note 1.