Intel is considering the sale of its cybersecurity business it acquired for $7.7 billion six years ago, according to a report by the Financial Times over the weekend, as it considers the future of Intel Security.
Intel Security was formed in 2010 after Intel acquired antivirus software maker McAfee, but the cybersecurity division’s focus on personal computing no longer fits with its strategy which has shifted towards the more lucrative data center market.
The news of the potential sale has brought Intel stock down 0.79 percent to $31.30 in pre-market trading on Monday, according to a report by TheStreet.
Intel Security may fetch the same amount Intel paid for the business back in 2010 as private equity interest in cybersecurity providers has grown along with the complexity and sophistication of cybersecurity threats.
In April, Intel named Diane Bryant to executive VP of its Data Center Group to lead the company past its focus on the PC market and into other areas of its business – such as data centers – that bring in more revenue.
Intel CEO Brian Krzanich outlined an optimistic future for the company recently, quelling concerns brought on by mass layoffs at the company in April, suggesting that a focus on the data center and the Internet of Things (IoT) would position the company for future success.
Intel’s cybersecurity division isn’t the only business Intel is considering hanging a ‘for sale’ sign on. In May, Intel’s venture capital unit drew interest from a number of investment firms interested in the assets worth around $1 billion.