Intel’s acquisition of McAfee

Intel’s acquisition of McAfee at $7.7 billion is bigger head scratcher then their previous acquisition of Wind River. But I am pampered to relate this acquisition with the rumor of Intel’s acquisition plan for Infineon. This acquisition weakens the rumor since after spending so much money on this acquisition, despite Intel may have cash reserve in billions but would not like to get exhausted fully. Secondly, diverting the aim from wireless business because the McAfee security SW are PC focused. I guess Intel would have not spent $7.7 for security software to embed in chips. It means a strong possiblity of Intel having plan to expand the business on software and service business model (e.g. similar to IBM) and does not want to rely revenue only from silicon. Intel paid $48 a share for McAfee on Thursday, 60 percent premium over the previous day's close. It indicates how desperate Intel was for this deal which must be linked with Intel’s aggressive plan for expanding the product portfolio.