Intel will still retain a 49 percent share in the new security company
Intel has spun out its McAfee security division, committing to setting up a separate cyber security firm under the well established McAfee name, yet still retaining a 49 percent stake in the company.
McAfee on its own is valued at $4.2 billion (£3.37bn), nearly half of the $7.6 billion (£6.11bn) Intel paid for it back in 2010, with the goal of building security tech into its hardware.
The new McAfee will operate out of Santa Clara, California under the command of Intel Security general manager Christopher Young, who will assume the position of chief executive officer at the company. Private equity firm TPG Capital will hold the remaining 51 percent stake in the stand-alone company.
Intel cuts out McAfee
“As a standalone company with a clear purpose, McAfee gains the agility to unite people, technology and organisations against our common adversaries and ensure our technology-driven future is safe.”
Given the value of McAfee and the money Intel paid for it, there are indications that Intel has not enjoyed much success with its cyber security division. That being said, divesting McAfee from the parent company, could allow the cyber security firm more flexibility in how it operates and runs its business.
Nevertheless Intel will back McAfee, even though it does not have a controlling stake in the spun-out company.
“We offer Chris Young and the McAfee team our full support as they establish themselves as one of the largest pure-play cybersecurity companies in the industry,” said Brian Krzanich, Intel’s chief executive.
“Security remains important to Intel, and in addition to our equity position and ongoing collaboration with McAfee, Intel will continue to integrate industry-leading security and privacy capabilities in our products from the cloud to billions of smart, connected computing devices.”
The move also signals a victory for Intel against McAfee founder John McAfee, who has contested the use of his name by Intel in creating a separate company.
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