Intel Corp (INTC) recently announced that its business unit Mashery has acquired Hacker League for an undisclosed sum. Mashery, a San-Francisco based company founded in 2006, was acquired by Intel in May, 2013. Mashery helps service developers in API tracking, metering and security to provide access to critical data.
Hacker League is an organizer of “hackathons”, or events organized to solve different programming problems within a specified time. The creations resulting from these events can be used to facilitate the app development process, which is what makes it such a good fit with Mashery. The process also identifies skilled programmers, which makes it all the more valuable.
Hacker League’s IP (intellectual property) platform and other assets will move to Intel, with the three co-founders of Hacker League, namely Mike Swift, Abe Stanway and Ian Jennings parting ways.
The acquisition of Hacker League by the Intel unit seems to indicate the company’s intent to work more closely with developers. Intel could use Hacker League’s platform in its own hardware-owned hackathons. Mashery could utilize the platform to further its own internal development.
Intel seems to have taken the same path as Yahoo Inc. (YHOO), which has been on an acquisition spree of late. Intel acquired the HTML5 assets of appMobi in February and followed it up with the acquisition of Mashery.
Intel is poised to register growth in the future by emphasizing on its primary sphere of competencies, expanding its core business lines and by forging manufacturing agreements with other OEM manufacturers instead of adding new business lines and moving into the consumer electronics market with flashy new products as tools for achieving growth.
Intel Corporation is one of the world’s largest semiconductor chipmakers. Intel reported third-quarter revenues of $13.48 billion, within the guidance range of 13.5 billion (+/-$500 million). This was up 5.2% sequentially and 0.2% year over year.
Currently, Intel has a Zacks Rank # 3 (Hold). Better-ranked stocks in the same sector include Intersil Corp. (ISIL) and Microchip Technology Inc (MCHP), both with a Zacks Rank # 2 (Buy).
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