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MGT Capital Investments (MGT), the digital gaming company morphing into a cybersecurity business, tapped John McAfee to transform the company. But its lawsuit against Intel Corp. (INTC) over the McAfee name just got much more complicated: Intel and private equity firm TPG have announced Intel Security will be spun off into a standalone company called McAfee.

Intel's New Deal

Late Wednesday, Intel and TPG announced the deal in which the two will create a new, jointly owned, independent cybersecurity company. TPG will own a 51 percent stake in McAfee, which was previously named Intel Security, while Intel will get a 49 percent stake. The companies said the business is valued at around $4.2 billion. TPG is making a $1.1 billion equity investment in the company to help drive its growth and enable it to be a standalone company. Intel said the new company will be one of the world’s largest pure-play cybersecurity companies. Intel first acquired then McAfee Associates for $7.7 billion in 2011 and did away with the McAfee name.

MGT Capital, for its part, wants to rename itself as McAfee Technologies, something that’s harder to do with Intel claiming ownership of the name. Shareholders of MGT capital are slated to vote on the name change at a meeting today. Ahead of the vote, outspoken and sometimes controversial cybersecurity guru John McAfee, with the backing of the company, launched a lawsuit against Intel seeking rights to the McAfee name.

MGT vs. Intel

In the lawsuit, MGT Capital said it wants Intel to give up the rights to the McAfee name, arguing the chipmaker is “improperly” using it and preventing John McAfee from “earning a livelihood using” his own name. (See, also: MGT Capital Jumps After Share Rescind Request.) MGT Capital contends that upon announcing it was changing its name to John McAfee Technologies, Intel informed MGT Capital it owned the McAfee name. Disputing that, in the lawsuit MGT Capital said the sale of McAfee Associates was for certain business assets but didn’t include the transfer or otherwise assign rights to McAfee’s personal name nor did the agreement include any non-compete clauses. (See, also: MGT Sues Intel Over McAfee's Name.)

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