IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more
In-depth

Why has Intel bought McAfee?

Intel stunned markets yesterday with the announcement of a massive deal to buy McAfee. Simon Brew looks at some of the reasons why it may have done it.

Let's face it: as announcements go, this one came like a bolt out of the blue. And given how difficult pulling a major surprise on the market can be, that shouldn't be understated.

For yesterday's revelation that Intel is buying McAfee for $7.68 billion was a massive rug pull, one made all the more surprising by the fact that the firm is paying cash for the deal. Granted, borrowing is relatively cheap at the moment, that this is still a massive investment.

It's especially impressive that it managed to keep all of this so tightly under wraps, as the reaction to the news can testify. Although there's an argument that suggests that it's such an unpredictable deal that few would have had any idea that it was coming?

So what is Intel up to, what does it want with McAfee, and what's the long term plan? Let's take a look at some of the reasons the ones Intel is admitting and the ones it isn't - for the deal

Cash in the bank

The first one may well underpin several other possible reasons why the deal has taken place. And it's this: Intel simply had money to spend, at a time in the market when few other companies have.

It could thus pull a deal of this magnitude, get McAfee for the price it wanted, and face little in the way of competition. Furthermore, if there is spare cash on the Intel balance sheet, this also means that it's going towards funding something, rather than being returned to shareholders or paid in tax.

In short, that it's growing the business, and avoiding what might otherwise be dead money. That might not be music to the ears of shareholders looking for a higher dividend, but it arguably makes more practical sense for the long term future of the business.

Featured Resources

Accelerating AI modernisation with data infrastructure

Generate business value from your AI initiatives

Free Download

Recommendations for managing AI risks

Integrate your external AI tool findings into your broader security programs

Free Download

Modernise your legacy databases in the cloud

An introduction to cloud databases

Free Download

Powering through to innovation

IT agility drive digital transformation

Free Download

Recommended

Calling all US-based SMBs
Hardware

Calling all US-based SMBs

28 Jun 2022
Intel pauses Ohio chip site development, citing delays in US CHIPS act subsidies
Hardware

Intel pauses Ohio chip site development, citing delays in US CHIPS act subsidies

24 Jun 2022
Intel becomes latest tech company to freeze recruitment
Careers & training

Intel becomes latest tech company to freeze recruitment

9 Jun 2022
Technology reimagined
Whitepaper

Technology reimagined

12 May 2022

Most Popular

Salaries for the least popular programming languages surge as much as 44%
Development

Salaries for the least popular programming languages surge as much as 44%

23 Jun 2022
The UK's best cities for tech workers in 2022
Business strategy

The UK's best cities for tech workers in 2022

24 Jun 2022
LockBit 2.0 ransomware disguised as PDFs distributed in email attacks
Security

LockBit 2.0 ransomware disguised as PDFs distributed in email attacks

27 Jun 2022