Takeover negotiations between Broadcom and Symantec could be back on.
According to Reuters, which cited“people familiar with the matter”, negotiations are almost over and the deal could be reached as soon as today. We will know for certain once Symantec announces its earnings later today. Both companies are currently tight-lipped on the matter, while the Wall Street Journal claims the deal could be worth as much as $10 billion.
The news made Symantec’s stock rise 14 per cent in extended trading. Broadcom didn’t do as good, with shares falling 1 per cent.
Last month, Symantec decided not to pursue the acquisition deal with Broadcom any further, as the two companies couldn’t see eye to eye regarding the price. At the time, 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 were reporting that Symantec was looking for “more than $28 per share” at the time.
The cybersecurity company is allegedly “struggling with sever competition from nimbler rivals”, as Reuters puts it. It has also seen a couple of its highest executives leaving this year, as well as an accounting irregularity investigation by US authorities.