Symantec shares rise after Intel says it will buy security software maker’s rival McAfeeBy AP
Thursday, August 19, 2010
Symantec rises after Intel says it will buy McAfee
SAN FRANCISCO — Shares of Symantec Corp. rose Thursday after chip maker Intel Corp. said it would buy the computer-security software maker’s rival, McAfee Inc., for a 60 percent premium in a deal valued at $7.68 billion.
THE SPARK: Early Thursday, Intel said it would buy McAfee — a move by the world’s largest maker of computer chips to improve the security of its computer chips and gain a new stream of revenue from the sale of security software.
McAfee shares skyrocketed, and hopes that Symantec could also be an acquisition target helped its shares climb, too.
THE BIG PICTURE: Intel believes security has become a fundamental part of online computing, but that current approaches to security aren’t good enough given the rise in Internet connections in devices like phones, cars and medical devices. The company believes software, hardware and services need to be integrated.
Intel CEO Paul Otellini said in a conference call with analysts that energy-efficient performance and connectivity have been important aspects of computing in the past, and in the future security will become another core computing requirement.
SHARE ACTION: Symantec shares rose 58 cents, or 4.6 percent, to $13.17 in afternoon trading.
Tags: Computer And Data Security, Computing And Information Technology, Health Care Industry, McAfee, North America, San Francisco, Software, United States