{"id":92994,"date":"2020-10-20T01:42:00","date_gmt":"2020-10-19T22:42:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/"},"modified":"2020-10-20T01:42:00","modified_gmt":"2020-10-19T22:42:00","slug":"mcafee-ipo-5-things-to-know-about-the-security-software-company","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/","title":{"rendered":"#\n  McAfee IPO: 5 things to know about the security-software company"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e789fc0589\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e789fc0589\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#After_Intel_purchase_and_private-equity_investments_McAfee_plans_to_return_to_public_markets_with_lots_of_debt_and_a_confusing_ownership_structure\" >After Intel purchase and private-equity investments, McAfee plans to return to public markets with lots of debt and a confusing ownership structure<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#The_McAfee_logo_is_displayed_at_the_Mobile_World_Congress_in_Barcelona_on_Feb_25_2019\" >The McAfee logo is displayed at the Mobile World Congress in Barcelona on Feb. 25, 2019.<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#There_are_a_few_fingers_in_the_pie\" >There are a few fingers in the pie<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#A_confusing_stock_structure\" >A confusing stock structure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#Profitable_this_year_until_you_factor_in_the_reorganization\" >Profitable this year, until you factor in the reorganization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#Much_of_the_offering_is_being_used_to_pay_off_a_fraction_of_debt\" >Much of the offering is being used to pay off a fraction of debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#Founder_not_a_risk_factor\" >Founder not a risk factor<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/mcafee-ipo-5-things-to-know-about-the-security-software-company\/#Wallace_Witkowski\" >Wallace Witkowski<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  McAfee IPO: 5 things to know about the security-software company<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"After_Intel_purchase_and_private-equity_investments_McAfee_plans_to_return_to_public_markets_with_lots_of_debt_and_a_confusing_ownership_structure\"><\/span>\n  After Intel purchase and private-equity investments, McAfee plans to return to public markets with lots of debt and a confusing ownership structure<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000035886\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.640625%;\" data-mobile-ratio=\"66.640625%\" data-layout-ratio=\"66.640625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-237719?width=140&amp;size=1.5005861664712778 140w,\nhttps:\/\/images.mktw.net\/im-237719?width=540&amp;size=1.5005861664712778 540w,\nhttps:\/\/images.mktw.net\/im-237719?width=620&amp;size=1.5005861664712778 620w,\nhttps:\/\/images.mktw.net\/im-237719?width=700&amp;size=1.5005861664712778 700w,\nhttps:\/\/images.mktw.net\/im-237719?width=860&amp;size=1.5005861664712778 860w,\nhttps:\/\/images.mktw.net\/im-237719?width=1260&amp;size=1.5005861664712778 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-237719?width=620&amp;size=1.5005861664712778\" data-enlarge=\"https:\/\/images.mktw.net\/im-237719?width=1260&amp;size=1.5005861664712778\" alt=\"\" title=\"The McAfee logo is displayed at the Mobile World Congress in Barcelona on Feb. 25,...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"The_McAfee_logo_is_displayed_at_the_Mobile_World_Congress_in_Barcelona_on_Feb_25_2019\"><\/span>The McAfee logo is displayed at the Mobile World Congress in Barcelona on Feb. 25, 2019.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            (Agence France-Presse\/Getty Images)<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       McAfee Corp. plans to return to the public markets after nearly a decade as a private company, but the security-software company is re-emerging as a structured entity that would take a team of lawyers and accountants to truly explain. <\/p>\n<div class=\"paywall\">\n       On Tuesday, McAfee<br \/>\n        MCFE,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\" class=\"\"><\/bg-quote><br \/>\n       established a projected price range for its initial public offering of $19 to $22 a share, after initially filing for an IPO in late September. The company plans to list under the ticker \u201cMCFE\u201d on the Nasdaq. Underwriters include Morgan Stanley, Goldman Sachs, TPG Capital, BofA Securities, and Citigroup. The IPO involves 37 million shares, or 42.6 million if underwriters exercise all options to cover overallotments. <\/p>\n<p> McAfee reportedly plans to price the IPO late Wednesday, with trading to begin on Thursday.<\/p>\n<p>Here are five things you should know.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"There_are_a_few_fingers_in_the_pie\"><\/span>There are a few fingers in the pie<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>A little more than a decade ago, Intel Corp.<br \/>\n        INTC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203649727\/composite\" class=\"positive\">+0.77%<\/bg-quote><br \/>\n       announced it was buying McAfee for $7.7 billion in a deal that closed the following year. About five years later,\u00a0Intel sold a majority stake in McAfee to private-equity firm TPG\u00a0for $4.2 billion. The following year, Thoma Bravo cut a deal with TPG to take a minority stake.  <\/p>\n<p>Rumors that McAfee would go public have been circulating\u00a0for more than a year, but its owners chose to make the leap amid a strong year for IPOs. The Renaissance IPO ETF<br \/>\n        IPO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207665280\/composite\" class=\"negative\">-0.12%<\/bg-quote><br \/>\n       is up 80% this year, compared with a 34% gain in 2019 and an 18% loss in 2018. The S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-1.63%<\/bg-quote><br \/>\n       is up 8% this year, following a 29% gain in 2019, and a 6% loss in 2018.<\/p>\n<p>When all is said and done, TPG, Thoma Bravo and Intel will control about 82.2% of the voting power. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"A_confusing_stock_structure\"><\/span>A confusing stock structure<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Following the IPO there will be two classes of stock, up to 166.7 million Class A shares and up to 264.7 million Class B shares, and each of those classes will carry one vote. <\/p>\n<p>But that\u2019s where simplicity ends, because those class distinctions are mixed up with a witches\u2019 brew of exchanges of management incentive units and LLC units and reorganization transactions, as shown in this chart from the company\u2019s filing with the Securities and Exchange Commission.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:91.71875%;\" data-mobile-ratio=\"91.71875%\" data-layout-ratio=\"91.71875%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-246999?width=140&amp;size=1.090289608177172 140w,\nhttps:\/\/images.mktw.net\/im-246999?width=540&amp;size=1.090289608177172 540w,\nhttps:\/\/images.mktw.net\/im-246999?width=620&amp;size=1.090289608177172 620w,\nhttps:\/\/images.mktw.net\/im-246999?width=700&amp;size=1.090289608177172 700w,\nhttps:\/\/images.mktw.net\/im-246999?width=860&amp;size=1.090289608177172 860w,\nhttps:\/\/images.mktw.net\/im-246999?width=1260&amp;size=1.090289608177172 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-246999?width=620&amp;size=1.090289608177172\" data-enlarge=\"https:\/\/images.mktw.net\/im-246999?width=1260&amp;size=1.090289608177172\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>How all the moving parts fit together is not easy to deduce even after several readings of the SEC filing, but the bottom line <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be that public stockholders will get 22.4% economic interest in the company with only 8.6% voting interest. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Profitable_this_year_until_you_factor_in_the_reorganization\"><\/span>Profitable this year, until you factor in the reorganization<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>The security software company brought in $2.64 billion in revenue in 2019 for a loss of $236 million, according to <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1783317\/000119312520268184\/d89887ds1a.htm#rom89887_7\" class=\"icon none\">McAfee\u2019s S-1 filing<\/a>. For the first 26 weeks of 2020, the company reported revenue of $1.4 billion and net income of $31 million, as long as you adjust the numbers for the massive reorganization and other factors <\/p>\n<p>When the reorganization transactions and other pro forma adjustments are taken into account, McAfee ran at a $3 million loss for the first half of 2020. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Much_of_the_offering_is_being_used_to_pay_off_a_fraction_of_debt\"><\/span>Much of the offering is being used to pay off a fraction of debt<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>McAfee said it plans to use about $525 million \u201cto repay all outstanding obligations with respect to our Second Lien Term Loan,\u201d while it estimates that if shares price at the midpoint of the range, or $20.50 a share, it will net about $612 million if underwriters exercise their full options of shares. <\/p>\n<p>That\u2019s only a drop in the bucket for McAfee\u2019s debt after its private-equity flip, however. In its financial statements, McAfee lists $4.66 billion in debt, which it estimates should get cut down to $4.15 billion after the offering. <\/p>\n<h6><span class=\"ez-toc-section\" id=\"Founder_not_a_risk_factor\"><\/span>Founder not a risk factor<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>The recent arrest and federal charges against John McAfee, who founded the company in 1987 and left it in 1994, don\u2019t pose a risk to the IPO, according to the SEC filing. <\/p>\n<p>In its indictment, the Justice Department noted that from 2014 to 2018, when John McAfee is alleged to have not filed tax returns, he did not receive \u201cany income or had any connection with the antivirus company bearing his name.\u201d In 2017, John McAfee and Intel settled a lawsuit where McAfee agreed not to use his name or trademark his name in any security-related products or services.  <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Wallace Witkowski\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Wallace_Witkowski\"><\/span>Wallace Witkowski<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-D8C2EB57B41F%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# McAfee IPO: 5 things to know about the security-software company &#8221; After Intel purchase and private-equity investments, McAfee plans to return to public markets with lots of debt and a confusing ownership structure The McAfee logo is displayed at the Mobile World Congress in Barcelona on Feb. 25, 2019. (Agence France-Presse\/Getty Images) McAfee Corp&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":92995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-92994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=92994"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/92995"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=92994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=92994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=92994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}