Looks like desperation given the cash flow....
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Absent innovation, McAfee is ultimately destined for the dustbin of cybersecurity history.
Down quite a bit and what is deserved. I was shocked that they took the full company public. Enterprise is doing horribly; it is the only thing they have been doing consistently.
It would appear that the IPO has thus far not provided much beyond a liquidity event. When Intel spun off McAfee in April 2017, its valuation was $4B, whereas today it's $8B. Not a bad profit for TPG and executive management. Yet with the massive debt load McAfee carries, it's not in a position to acquire innovative companies beyond small start-ups whose products and revenues won't move the needle whatsoever. McAfee may be picking up some of the Symantec sc-aps after selling its enterprise business to Broadcom (which usually sheds all but the top customers of companies that it acquires). But you can't rebuild a company off table sc-aps, particularly when Crowdstrike and other competitors are far more aggressive in pursuing such business.
Any investment that is associated with TPG is absolute garbage. I have worked with them long enough to know that they don’t really care of building a successful company. They care about dividends funded by taken on debt, cutting costs to the bone including shipping jobs abroad. In the meantime they extort the company with these ridiculous fees which are huge and add absolutely no value and the equivalent of a New York shakedown. These types of PE firms are the biggest risk to our economy and just run by immoral greedy individuals!
The proceeds will go to TPG as a dividend!
Based on the limited information available, the primary purpose of the IPO is to pay down debt, with some of the cash possibly being used to provide a liquidity event (exit) for current investors and executives (many of whom have held shares since the spin-off in April 2017). The intent may also be to create a public market share pool for recruiting new talent to refresh McAfee's products/services, particularly with competitors like CrowdStrike and others already offering significant equity to average employees.