John McAfee's MGT Capital Subject to SEC Subpoena
19 September 2016 - 11:52PM
Dow Jones News
By Austen Hufford
Technology pioneer John McAfee's MGT Capital Investments Inc.
said Monday that it received a subpoena last week from the
Securities and Exchange Commission and that it is fully cooperating
with the regulator.
Shares fell up to 13% to $2.85 in premarket trading.
The company, which is in the process of acquiring a portfolio of
cybersecurity technologies, said it has no indication or reason to
believe it will be subject to enforcement proceedings.
Mr. McAfee was a founder of the computer security firm that
shares his name. He sold his interest in its key assets in the
1990s.
In 2011, Intel Corp. bought McAfee Inc. for $7.68 billion. In
September, Intel reached a deal to sell a majority stake in the
McAfee unit to private-equity firm TPG. Mr. McAfee recently filed a
suit against Intel, seeking a declaration that he has the right to
use his name in connection with security products. Intel had warned
him in a letter that his use of the name would constitute a
trademark violation.
MGT Capital said it is currently in the process of buying
D-Vasive, a maker of anti-spying software, and Demonsaw, a provider
of anonymous file sharing. After that purchase, it plans to change
its corporate name to "John McAfee Global Technologies Inc."
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 19, 2016 09:37 ET (13:37 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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