Microsoft Buys Antispyware Maker

In yet another move in the consolidating computer security sector, Microsoft(MSFT Quote) on Wednesday acquired privately held Giant Company Software, a maker of antispyware software.

The acquisition of Giant is another step by Microsoft into the security space, following Microsoft's acquisition last year of Romanian antivirus software maker GeCAD Software. That earlier acquisition raised concerns about Microsoft entering the antivirus market, the sweet spot for security maker Symantec(SYMC Quote). Industry watchers have said that threat from Microsoft has led Symantec to acquire companies in other fields, including storage with its acquisition of Veritas(VRTS Quote), also announced Thursday.

Similarly, analysts suggested Thursday that Microsoft's Giant acquisition could encroach on the business of security vendor McAfee(MFE Quote). In a note Thursday, Wedbush Morgan Securities analyst Kevin Trosian highlighted the potential pressure of the Microsoft news on McAfee, which he described as an early leader in antispyware among public companies. (Trosian has a buy rating on McAfee, though he removed the stock from the firm's focus list on Wednesday because he believes the company's turnaround has been priced into the stock. His firm hasn't done banking with McAfee.) ...