Categories Earnings, LATEST, Markets, Other Industries, Technology

Symantec shares soar on Broadcom acquisition reports

Broadcom Inc. (NASDAQ: AVGO) is looking to acquire cybersecurity company Symantec Corp. (NASDAQ: SYMC), according to a report by Bloomberg. The company is said to be in advanced talks and could reach an agreement within weeks.

However, the deal has not yet been finalized and there is no guarantee that an agreement will be reached. Both companies have not offered any comment on the matter. Symantec’s shares jumped 19% in premarket hours on Wednesday while Broadcom’s stock fell 4%.

Symantec has been struggling for a while with tough competition and slowing demand and the company saw its CEO Greg Clark abruptly leave the organization last month.

If successful, this would be Broadcom’s second largest acquisition in recent times. The company acquired CA Technologies for $18 billion last year. Broadcom had previously tried to acquire Qualcomm Inc. (NASDAQ: QCOM) but the deal was blocked over national security concerns.

Based on data from MarketWatch, analysts have estimated that the deal could value Symantec at $16.1 billion to $17.3 billion.

Last month, Broadcom reported its second quarter 2019 results in which the company surpassed earnings estimates but missed on revenue. Revenues rose 10% year-over-year while adjusted EPS grew 7%.

Symantec saw a decline in revenue and adjusted EPS for its most recent quarter. Earnings dropped 11% but matched expectations while revenue fell 2% and missed forecasts. Broadcom’s shares have gained over 16% thus far this year while Symantec’s stock has climbed 19%.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top