Microsoft buys anti-virus software maker
Microsoft Corp. on Tuesday said it would buy anti-virus software maker Sybari Software Inc. in a direct challenge to Symantec and McAfee Inc., which currently dominate that market.
If Microsoft (Research), 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 J.P. Morgan.
McAfee (Research) shares were down 5.4 percent. Symantec (Research), 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.
