Microsoft Corp. said on Tuesday it would buy anti-virus software maker Sybari Software Inc. in a direct challenge to Symantec Corp. and McAfee Inc., 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 8.55 percent, or $2.24 to $23.72 in afternoon trade on the New York Stock Exchange. Symantec, which recently bought storage software company Veritas to diversify and reduce its dependence on security, was down 5.64 percent or $1.33 to $22.27 on the Nasdaq.
Mike Nash, vice president at Microsoft's security business unit, declined to say how much Microsoft paid for Sybari, but according to regulatory documents filed by the company in preparation for a public offering, Sybari had valued itself between $163 million and $182 million.
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 8.55 percent, or $2.24 to $23.72 in afternoon trade on the New York Stock Exchange. Symantec, which recently bought storage software company Veritas to diversify and reduce its dependence on security, was down 5.64 percent or $1.33 to $22.27 on the Nasdaq.
Mike Nash, vice president at Microsoft's security business unit, declined to say how much Microsoft paid for Sybari, but according to regulatory documents filed by the company in preparation for a public offering, Sybari had valued itself between $163 million and $182 million.
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