How Will Intel (INTC) Stock React as McAfee Unit For Sale?

Intel’s (INTC) computer security segment McAfee is reportedly drawing interest from private equity firms such as Thoma and Permira as the company considers selling the unit.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Intel's (INTC) - Get Report computer security segment McAfee is receiving interest from private equity firms as the company considers selling the unit, according to sources cited by Bloomberg.

Thoma Bravo, Permira and Vista Equity Partners are some of the firms doing preliminary research on McAfee in the event of a sale, the sources added.

Although the Santa Clara, CA-based tech giant has held talks with banks about an auction of the business, none have been hired and Intel could decide to keep McAfee, Bloomberg said.

The company is considering selling McAfee as it moves away from investments in the declining PC market business and focuses on offerings for its more lucrative data-center business.

Last month, the Financial Times reported that Intel was weighting options for the McAfee unit.

Shares of Intel are higher by 0.11% to $34.98 early Wednesday afternoon.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and increase in net income.

The team believes its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: INTC

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