Broadcom, Symantec End Acquisition Talks: Report
Perhaps Broadcom is not acquiring Symantec after all. Indeed, the two companies have ceased deal negotiations, according to CNBC.
Updated August 7, 2019: Broadcom and Symantec resume M&A negotiations
Original report from July 15, 2019 continues below:
Rumors about Broadcom acquiring Symantec have swirled for most of this month. The chip giant even lined up financing for the proposed cybersecurity software buyout, while also identifying about $1.5 billion in potential cost saving steps within Symantec’s business, reports suggested earlier this month.
But now, deal negotiations have ended, CNBC mention this morning. Symantec shares (stock symbol: SYMC) fell 14.54 percent in pre-market training amid the report.
The two companies apparently had a deal over the weekend that valued Symantec (SYMC) stock at $28.25. However, Broadcom trimmed the offer by about $1.50 to $2.00 per share after finding an issue in due diligence, Bloomberg reports. Both sides could come back to the negotiating table if they close the gap on valuation.
ChannelE2E has not independently confirmed the CNBC or Bloomberg reports.
Symantec Talent, Business Challenges
Symantec has struggled on multiple fronts in recent years. Former CEO Greg Clark resigned in May 2019 amid weak enterprise cybersecurity software revenues. Executive team departures over the past year have also included Symantec’s CFO, chief operating officer, chief marketing officer and the head of its go-to-market teams, Silicon Valley Business Journal noted in May. Board member Rick Hill has been interim president and CEO of the company since that time.
The big question now: Is Symantec still searching for a new CEO or is the cybersecurity software company hoping for another potential buyer to emerge?