When Intel announced it was to purchase McAfee for a price of almost $8 billion, it caused a lot of head scratching among industry analysts as many did not see a clear business logic to go for this acquisition. It made little sense for a hardware player in the semiconductor business to purchase a company that is purely security software focused. Would Intel be able to pull off a successful merger and gain the benefits it anticipates from this deal? Through this report we shall analyse the merger to determine whether it can be considered successful or not. We shall look ar the rationale for the reasons that motivated this acquisition, how it was executed and what was the outcome.
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Welcome to my report on the merger
Intel is the world’s largest semiconductor chip maker. It is based in Santa Monica, California in the USA. It is an American company and listed on the NASDAQ exchange (INTC). Intel’s core business is hardware related and it manufactures processors used in computers bot servers and personal computers. It also deals in other hardware used in a wide variety of electronic devices and wireless communication equipments. It employs almost 82,000 employees worldwide . Major competitors include AMD with which it competes directly in its PC market. Intel is dominent here grabbing 80% of market share . However of late with PC sales slowing the company is trying to launch into the mobile market where the competition is much stiffer and Intel is playing catch up with much more successful companies like ARM which power most modern smartphones. McAfee
McAfee is a software company also based in Santa Monica, California whose core expertise is security software. Its software are sold to both consumers as well a enterprises. Its software includes antiviruses and anti spyware which protect systems from malicious attaches, adware and malware. McAfee is one of the leading...