Broadcom is looking to buy Symantec, but nothing is yet official. This is the highlight of Bloomberg's new report, which cites unnamed sources familiar with the matter.
Apparently, the deal is not yet public and could fall through at any time, which is why both companies are silent on the matter. We don't know yet how much money is at stake here, but Financial Times seems to believe it could be close to the $15bn mark.
What we do know for certain, however, is that Symantec's shares have been trading yesterday at prices the company hasn't seen in eight months.
On Wednesday, the company's shares rose 16 per cent, hitting $22.10. At the same time, Broadcom's shares fell 3.5 per cent, closing at $295.33 on Tuesday.
Broadcom seems to be serious about its idea to move further into software. This could be its second large acquisition, after it recently bought CA Technologies, a move which not everyone greeted kindly.
“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.”
Symantec was founded in 1982 and is headquartered in Silicon Valley. It offers a wide array of cybersecurity solutions, most of which are for corporate computer networks. It recently bought LifeLock, a company specialising in identity theft prevention, for $2.3bn.