MGT Capital Investments (MGT) may not have generated any revenue yet, but the company’s new CEO, John McAfee, thinks the company is poised to become a powerhouse in the cybersecurity industry, even as Intel Corp. (INTC) and the private equity firm TPG are gearing up to launch a standalone security company dubbed McAfee. (See also: Intel Sells a Majority Stake in McAfee.)
In an interview with Business Insider, McAfee said MGT will become a big player in the cybersecurity industry and that investors need to look past the lack of revenue so far in 2016. He said the company is a startup and will have “substantial revenues” next year. McAfee pointed to MGT Capital’s acquisition of Demonsaw, which shareholders approved last week, as evidence of the future growth of the company. Demonsaw is an anonymous information-sharing application. "It is not simply a file-sharing, or messaging, or emailing or communication app. It is the architecture that should have been the internet. A distributed non-peer-to-peer system that will make the cloud completely obsolete,” McAfee said in the interview.
Naming Dispute with Intel
The comments on the part of McAfee comes at a time when his new company, which is morphing from a digital gaming concern to a cybersecurity company, is embattled in a lawsuit with Intel over the McAfee name. MGT wants to change its name to John McAfee Global Technologies but Intel still owns the McAfee name from the acquisition years ago of McAfee Associates. 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.
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 noncompete clauses. The lawsuit came just days before Intel and TPG announced their deal. Shares of MGT ended the trading session down 3% on Monday. (See also: MGT Sues Intel Over McAfee's Name.)