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Tue 8 Feb, 2005 12:47 pm
Business - Reuters
Reuters
Microsoft Buying Anti-Virus Software Co.
1 hour, 45 minutes ago
NEW YORK (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news) on Tuesday said it would buy anti-virus software maker Sybari Software Inc. in a direct challenge to Symantec (Nasdaq:SYMC - news) and McAfee Inc. (NYSE:MFE - news), which currently dominate that market.
If Microsoft, the world's largest software maker, bundles anti-virus features into its Windows operating system, security software makers could feel the pressure, analysts said.
"Microsoft's acquisition of Sybari will get them into the (business) anti-virus market specializing in e-mail protection, a negative for Symantec and McAfee," said Sterling Auty, an analyst with JP Morgan.
McAfee shares were down 5.4 percent. Symantec, which recently bought storage software company Veritas to diversify and reduce its dependence on security, was off 3.9 percent.
Auty estimates the Sybari deal will put Microsoft in competition for business representing up to 5 percent of Symantec's revenue and 8 percent of McAfee's revenue.
Closely held Sybari provides anti-virus protection for e-mail systems, primarily Microsoft Exchange and Lotus Notes. Terms of the proposed acquisition were not disclosed.
Sybari filed last year to go public. In its latest filing, in January, it said it might sell 3.35 million shares at $14 to $16 each in an initial public offering. It said it had revenue of $34.1 million and a loss of $2.6 million in the first nine months of 2004.
Microsoft shares were up 10 cents at $26.26 near midday on the Nasdaq stock market.
McAfee was down $1.40 at $24.56 on the New York Stock Exchange (news - web sites), and Symantec was off 93 cents at $22.67 on Nasdaq.
If Microsoft attempts to bundle anti-virus software with Windows it will effectively shut down the entire operating system.
Hi cjhsa:
Thanks for the caveat. Does anyone know why? I ask that because I'm puzzled that it's bundled with other systems. Well, scratch my head and call me bozo.
I'm not sure I understand your question Bob.
Any idea why the system would shut down because of it having an anti virus ability? I'm not savvy enough to understand the compexities involved. Essentially what causes it?
It was half joking that Windows is itself a virus...that's all.
That I can understand. They got so big they don't feel as if they have to answer for anything. The word monopoly occurred to me. But , quien sabe, maybe the times they are a-changing.
It has been written that if microsoft ever markets a product that doesn't such, it will mean they are peddling vacuum cleaners.
"Microsoft does not put enough emphasis on security!"
"Microsoft is going to bundle security software into their OS and use their monopoly to edge out other security firms!"
"Heads I win, tails you lose."
IMO, bundling AV software can be good for us all. The unprotected boxes out there are often vectors.
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