Intel buying McAfee

By Tiffany Hsu

Aug. 19, 2010 12 AM PT

Los Angeles Times Staff Writer

Intel Corp. is buying computer security software maker McAfee Inc. for $7.68 billion in a move that “reflects that security is now a fundamental component of online computing,” the Santa Clara-based chip maker said Thursday.

The $48-per-share price is a 60% premium over McAfee’s $29.93 close on Wednesday. The company, also based in Santa Clara, has seen steady growth and will report to Intel’s Software and Services Group.

Intel shares slid 3.4% to $18.92, but McAfee shares boomed nearly 58% to $47.21 in morning trading.

Cyber threats are surging, Intel said, and current security measures don’t effectively cover mobile and wireless devices or all the televisions, vehicles, medical devices and ATM machines that can now connect to the Internet.

“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said Intel senior vice president Renee James.

The deal has been unanimously approved by both companies’ boards of directors and is waiting to be cleared by shareholders and regulators.

Technology and the Internet

Tiffany Hsu

Tiffany Hsu is a former staff writer for the Los Angeles Times. Previously, she wrote about the California economy, fast food, restaurants, retail and alternative energy for the Business section. A Bay Area native, UC Berkeley graduate and eternal Nor-Cal fan, she once worked for the San Francisco Bay Guardian. She also did a stint at the Richmond Times-Dispatch, where she developed a passion for sweet tea. She still has faith that someday she’ll find two economists who agree.

Intel buying McAfee

More From the Los Angeles Times