Intel McAfee deal one step closer
By James • Jan 24th, 2011 • Category: Industry News, software
- Photo: McAfee
When Intel made the surprising bid to purchase security company McAfee, there were immediate anti-trust concerns, particularly in the EU region where regulators scrutinize major deals in excruciating detail. Word is Intel may have assuaged EU regulators in recent weeks, and is one step closer to swallowing the security company.
US Federal Trade cool, EU becoming cool
Given that McAfee is the world’s number two security company, behind only Symantec (the folks who make Norton), this deal was always going to come under a great deal of scrutiny in the US and with the European Commission.
Intel’s proposed $7.68 billion buy of McAfee has already been cleared by the US Federal Trade Commission, with sources telling Reuters the EU approval board is warming to the idea since Intel’s made concessions.
‘The Commission’s clearance is likely next week,’ the news agency was told by one of its sources.
What was being contested?
The natural questions are what concessions were made and what the sticking points were. Reportedly, the European Commission wanted Intel to allow competing products functionality on Intel’s offering without restrictions.
The primary concern was that Intel, who is by far the number one microprocessing chip maker in the world, would use the McAfee acquisition by embedding elements of the anti-virus tech into their chips, thus giving Intel an unfair advantage over competitors.
Side-by-side sales
With the explosion of web content, and the millions of hazards that accompany it now, online security has become a major concern. So it makes sense for Intel to make a play in the space.
What it comes down to, ultimately, is the distinction between software and hardware ‘blurring’ rapidly, and the European Commission doesn’t want any single big player in either space to gain an unfair advantage as a result of this.
Given that anti-virus software is big business with massive margins, Intel will want this to close in a hurry.
Tags for this article: intel, software




