Either that, or stock market prices are much less connected to business fundamentals than one would hope.
Small dip??? Intel lost $3.5 billion in market cap on the news. McAfee gained $2.6 billion.
$3.5b is a big number, but it's only 3% of their market cap.
http://www.google.com/finance?client=ob&q=NASDAQ:INTC
Several other companies in that market went down a similar amount, so it doesn't seem to be extraordinary. I would expect a lot of tech investors to move their money to McAffe after that announcement hoping to get something out of it.
What matters is what happens after now. If it continues to go down for a long time, it might be a problem.
Intel's stock only took a small dip, and it looks like some of those who left were shifting it to McAfee to ride the wave as the stock went up.
That's a lot of investors in an otherwise volatile market not jumping ship, so they must see something good in the deal that we're missing.