Symantec Corporation (NASDAQ:SYMC) shares stumbled out of the blocks Friday morning, following a report that Broadcom Inc (NASDAQ:AVGO) is in advanced talks to buy the company.
On July 3, reports came out that Broadcom wants to acquire Symantec Corporation, a cybersecurity firm, in an attempt to enter into a software business that is more profitable.
After the news came out, SYMC stock jumped. And yet, the news hasn’t been confirmed. In fact, people familiar with the matter even said talks could fall through.
If they don’t, however, this is huge news for Symantec Corporation as it means the company will take a new direction, which is probably why SYMC stock still jumped Wednesday even though the deal has yet to be finalized.
Now, just because Symantec and Broadcom haven’t addressed the deal yet doesn’t mean other people haven’t. According to one technology analyst, "Broadcom’s potential purchase of another asset with $4+ billion in software sales is likely its most ambitious deal yet – leaderless Symantec has been losing share, even in its core segments."
The analyst then added: "Broadcom CEO Hock Tan will likely need to aggressively cut Symantec costs while keeping sales stable."
Symantec lost 10 cents to $25.00 soon after Friday’s opening bell, while Broadcom stepped back $1.07 to $283.82
