Symantec share price nose dives after rumored Broadcom biz gobble taken off the menu

Looks like the ailing security shop priced itself out of an acquisition by chip giant


Symantec's share price has plunged on reports that its planned merger with Broadcom has fallen through.

According to CNBC, several sources have confirmed that the deal is off after Symantec insisted on too high a price – $28 a share – to sell up. That report, and the claim that it was asking too much, appear to have been validated when Symantec's stock price immediately dropped 12 per cent and has continued to slowly slide all morning. At the time of writing, it is down 15.5 per cent at $21.64.

Adding insult to injury, Broadcom's share price has risen slightly – up 1.7 per cent at the time of writing – demonstrating that as far as analysts are considered Symantec is not exactly a shining tech target.

Its CEO Greg Clark stepped down in May with no permanent replacement; something Symantec has had to get used to, losing five chief executives now in eight years. The security shop is also plagued with allegations of dodgy accounting, into which investigations are ongoing.

That said, when reports of the proposed deal first appeared, Symantec's price went up 18 per cent and Broadcom's went down 4 per cent, so Symantec has become mildly more interesting to the markets, presumably because they suspect someone else may look at buying the legacy security outfit.

Woman with crying with laughter emoji for a head

Symantec offloads its certs and web security biz to DigiCert

READ MORE

The Broadcom/Symantec love-in was short-lived. Just two weeks ago, it was reported that the two companies were in "advanced talks" with Broadcom planning to pay $15bn for control.

What went wrong? Well, CNBC reports that Symantec wanted $28 a share and Broadcom thought that was too high. Bloomberg has added more context by reporting that the deal was set higher than that – $28.25 – but Broadcom insisted on a drop of $1.50 – ie: down to $26.75 a share – after it had done its due diligence. Symantec wasn't happy with that and walked away. The deal was due to be announced this week.

The rationale for the deal was that Broadcom wants to get into higher margin software, a year after it bought CA Technologies for $18.9bn. Broadcom has had a relatively tough run of late as semiconductors slumped 12 per cent year-on-year in the first quarter of this year.

Broadcom CEO Hock Tan is also under pressure to justify his wage packet: he was the highest paid exec in the US in 2017 with a salary of $103.2m a year. Symantec will be the second failed takeover in the past year after Broadcom missed out on Qualcomm after US authorities blocked the deal, citing national security concerns. ®

Similar topics


Other stories you might like

  • UK science suffers as lawmakers continue to dither over Brexit negotiations

    Horizons Europe carrot dangled amid protocol wrangling

    A report from the UK House of Commons' European Scrutiny Committee has blamed delays in Brussels for choking off revenue streams to British institutions and businesses.

    The UK departed the European Union following a 2016 referendum. One of the results was that UK businesses were no longer able to tender for lucrative contracts within the bloc.

    The Brexit Divorce Bill uncomfortably laid out the facts back in 2018. The satellite navigation system Galileo was one victim despite substantial involvement from the UK in its development. Another was the Copernicus Earth monitoring programme; the UK was infamously snubbed when the European Space Agency (ESA) handed out six juicy contracts to institutions from the Continent.

    Continue reading
  • Warehouse belonging to Chinese payment terminal manufacturer raided by FBI

    PAX Technology devices allegedly infected with malware

    US feds were spotted raiding a warehouse belonging to Chinese payment terminal manufacturer PAX Technology in Jacksonville, Florida, on Tuesday, with speculation abounding that the machines contained preinstalled malware.

    PAX Technology is headquartered in Shenzhen, China, and is one of the largest electronic payment providers in the world. It operates around 60 million point-of-sale (PoS) payment terminals in more than 120 countries.

    Local Jacksonville news anchor Courtney Cole tweeted photos of the scene.

    Continue reading
  • Everything you wanted to know about modern network congestion control but were perhaps too afraid to ask

    In which a little unfairness can be quite beneficial

    Systems Approach It’s hard not to be amazed by the amount of active research on congestion control over the past 30-plus years. From theory to practice, and with more than its fair share of flame wars, the question of how to manage congestion in the network is a technical challenge that resists an optimal solution while offering countless options for incremental improvement.

    This seems like a good time to take stock of where we are, and ask ourselves what might happen next.

    Congestion control is fundamentally an issue of resource allocation — trying to meet the competing demands that applications have for resources (in a network, these are primarily link bandwidth and router buffers), which ultimately reduces to deciding when to say no and to whom. The best framing of the problem I know traces back to a paper [PDF] by Frank Kelly in 1997, when he characterized congestion control as “a distributed algorithm to share network resources among competing sources, where the goal is to choose source rate so as to maximize aggregate source utility subject to capacity constraints.”

    Continue reading
  • How business makes streaming faster and cheaper with CDN and HESP support

    Ensure a high video streaming transmission rate

    Paid Post Here is everything about how the HESP integration helps CDN and the streaming platform by G-Core Labs ensure a high video streaming transmission rate for e-sports and gaming, efficient scalability for e-learning and telemedicine and high quality and minimum latencies for online streams, media and TV broadcasters.

    HESP (High Efficiency Stream Protocol) is a brand new adaptive video streaming protocol. It allows delivery of content with latencies of up to 2 seconds without compromising video quality and broadcasting stability. Unlike comparable solutions, this protocol requires less bandwidth for streaming, which allows businesses to save a lot of money on delivery of content to a large audience.

    Since HESP is based on HTTP, it is suitable for video transmission over CDNs. G-Core Labs was among the world’s first companies to have embedded this protocol in its CDN. With 120 points of presence across 5 continents and over 6,000 peer-to-peer partners, this allows a service provider to deliver videos to millions of viewers, to any devices, anywhere in the world without compromising even 8K video quality. And all this comes at a minimum streaming cost.

    Continue reading
  • Cisco deprecates Microsoft management integrations for UCS servers

    Working on Azure integration – but not there yet

    Cisco has deprecated support for some third-party management integrations for its UCS servers, and emerged unable to play nice with Microsoft's most recent offerings.

    Late last week the server contender slipped out an end-of-life notice [PDF] for integrations with Microsoft System Center's Configuration Manager, Operations Manager, and Virtual Machine Manager. Support for plugins to VMware vCenter Orchestrator and vRealize Orchestrator have also been taken out behind an empty rack with a shotgun.

    The Register inquired about the deprecations, and has good news and bad news.

    Continue reading
  • Protonmail celebrates Swiss court victory exempting it from telco data retention laws

    Doesn't stop local courts' surveillance orders, though

    Encrypted email provider Protonmail has hailed a recent Swiss legal ruling as a "victory for privacy," after winning a lawsuit that sees it exempted from data retention laws in the mountainous realm.

    Referring to a previous ruling that exempted instant messaging services from data capture and storage laws, the Protonmail team said this week: "Together, these two rulings are a victory for privacy in Switzerland as many Swiss companies are now exempted from handing over certain user information in response to Swiss legal orders."

    Switzerland's Federal Administrative Court ruled on October 22 that email providers in Switzerland are not considered telecommunications providers under Swiss law, thereby removing them from the scope of data retention requirements imposed on telcos.

    Continue reading
  • Japan picks AWS and Google for first gov cloud push

    Local players passed over for Digital Agency’s first project

    Japan's Digital Agency has picked Amazon Web Services and Google Cloud for its first big reform push.

    The Agency started operations in September 2021, years after efforts like the UK's Government Digital Service (GDS) or Australia's Digital Transformation Agency (DTA). The body was a signature reform initiated by Prime Minister Yoshihide Suga, who spent his year-long stint in the top job trying to curb Japan's reliance on paper documents, manual processes, and faxes. Japan's many government agencies also operated their websites independently of each other, most with their own design and interface.

    The new Agency therefore has a remit to "cut across all ministries" and "provide services that are driven not toward ministries, agency, laws, or systems, but toward users and to improve user-experience".

    Continue reading
  • Singaporean minister touts internet 'kill switch' that finds kids reading net nasties and cuts 'em off ASAP

    Fancies a real-time crowdsourced content rating scheme too

    A Minister in the Singapore government has suggested the creation of an internet kill switch that would prevent minors from reading questionable material online – perhaps using ratings of content created in real time by crowdsourced contributors.

    "The post-COVID world will bring new challenges globally, including to us in the security arena," said Minister for Defence Dr Ng Eng Hen at a Tuesday ceremony to award the city-state's 2021 Defense Technology Prize.

    "For operations, the SAF (Singapore Armed Force) has to expand its capabilities in the digital domain. Whether for administrative or operational purposes, I think that we will need to leverage technology to the maximum," he declared.

    Continue reading

Biting the hand that feeds IT © 1998–2021