MGT Capital Investments (MGT), which is gearing up for a legal battle with Intel Corp. (INTC) over the McAfee name, has received the support of shareholders for all of the company’s proposals, including changing its name to John McAfee Global Technologies. (See also: Intel's Deal Complicates McAfee Feud.)
According to the company, on Thursday shareholders approved eight proposals, including issuing 43.8 million shares of common stock in relation to the proposed purchase of D-Vasive and Demonsaw, two cybersecurity companies. The board also ratified employment agreements for John McAfee, the executive chairman of MGT Capital, and Robert Ladd, the president and chief executive, and backed the proposal to change the name to John McAfee Global Technologies.
"We are pleased to have received overwhelming shareholder approval for the proposals at this year's annual meeting of stockholders, including the proposals that allow the Board of Directors to move ahead with our plans to transition into an innovative cybersecurity company,” McAfee said in a press release. “We will be able to execute upon these activities and implement the next phase of our strategy, bringing us one step closer to becoming a game-changing force in the cybersecurity industry."
While MGT won’t face opposition to moving away from being a digital gaming company and becoming a cybersecurity play, it may have a harder time calling itself John McAfee Global Technologies given Intel’s move earlier this week to hook up with private equity firm TPG to create a standalone security company called McAfee. Intel bought McAfee Associates back in 2011 for $7.7 billion and renamed it Intel Security. It held on to it for a few years and during that time MGT Capital not only lured John McAfee to the company but launched a lawsuit to get back the rights to the McAfee name. (See, also: Intel's Deal Complicates McAfee Feud.)
Ahead of Intel and TPG’s announcement, which values McAfee at $4.2 billion, MGT Capital said in the lawsuit it wants Intel to give up the rights to the McAfee name, arguing Intel 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 non-compete clauses.