Broadcom Shares Down Following Rumors Of Symantec Buyout
Zacks Investment Research | Jul 02, 2019 09:34PM ET
Speculation is rife that Broadcom (NASDAQ:AVGO) is likely to acquire Symantec Corporation (NASDAQ:SYMC), according to a Bloomberg report citing “people familiar with the matter.”
According to rumors, the deal is likely to be worth more than $15 billion and could be completed in few weeks.However, both Broadcomand Symantechave refrained from making any comments the rumored deal. Consequently, the terms of the deal are unknown.
Symantec, a world leader in Internet security technology, provides a broad range of solutions for content security and information back up to individuals and enterprises. Founded in 1982, the company has operations in more than 45 countries. It provides cyber security products, services and solutions to more than 350,000 organizations and 50 million individuals worldwide.
Notably, the deals marks Broadcom’s second biggest attempt to strengthen foothold in the software market, following its $18 billion agreement to acquire CA Technologies last year. Moreover, the rumors surfaced following President Trump’s prohibition of the Qualcomm (NASDAQ:QCOM) on grounds of national security concerns.
Following the news, Broadcom’s shares were down almost 4.1% in after-hours trade, while that of Symantecwent up approximately 22.28%. Shares of Broadcom were down owing to high debt level which the company will incur if the deal materializes. Moreover, its shares have returned just 16.1% on a year-to-date basis, underperforming the Original post
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