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Symantec ends Broadcom takeover talks

(Image credit: Image Credit: Symantec)

Cybersecurity company Symantec has reportedly ended negotiations with Broadcom regarding a potential takeover deal.

Broadcom was interested in buying the American security company with an offer of $28.25 per share in cash, to ink the deal.

The media are throwing speculations around, however, with CNBC, for example, saying Symantec wasn’t satisfied with the price and was ‘looking for more than $28 per share’.  Reuters also said there were ‘disagreements over price’, without going into much detail.

Even though Symantec is known for walking away from acquisition deals, the media believe that we’ll be hearing more from this story. Symantec had been struggling to grow its business and find a suitable replacement for the interim CEO Richard Hill.

The company’s shares fell 12 per cent, to $22.43 in Monday morning trading, which placed its value at $14 billion. Broadcom’s shares, on the other hand, jumped two per cent, hitting $291.32.

“Broadcom buys software companies, that’s their strategy. If this falls apart, they’ll buy something else at some point,” said Stacy Rasgon, an analyst with Bernstein.

The entire deal could be worth north of $15bn.

Symantec would make a perfect fit for the Broadcom portfolio,” Harsh Kumar, an analyst at Piper Jaffray wrote in a note to investors. According to him, the situation is similar to when Broadcom bought CA, “which ultimately turned out to be extremely successful under the Broadcom umbrella.”