Monday, 13 September 2010

Mobile On-chip DRM via Intel-MacAfee Deal

Intel acquires MacAfee in a move which nobody seems to have understood.

The single most ridiculous deal this year concluded at almost $7.6bn, at $48 per share, a premium over $18 over McAfee's closing price. McAfee is valued at 45 times earnings. Even Apple trades at only 20 times earnings.

However, if you take the biggest PC chip maker and add a big dose of so-called security expertise, I can only surmise more on-chip DRM is on the way...

Intel wants to supply chips to the increasingly dominant mobile market which will lock down conent to those devices, thereby securing the income of film, TV and record companies and the on-line content stores who sell for them. And forget any kind of jail-breaking. If the network anchor is embedded encrypted in the hardware and not in the OS, there's a permanent verification layer built into the device which software is going to have a hard time to break. Someone evidently thinks that's worth $7.6bn.  RC

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