Powerful combination has been broken: Broadcom and Symantec
In early July, information about Broadcom's desire to acquire Symantec Corp. appeared. At that time, Symantec shares for the first time in a long period grew by 16%. At the same time, Broadcom shares fell by 3.5%.
Jim Cramer expressed his admiration for the leaders of both companies and called the potential deal "a powerful combination." Even though many analysts considered this deal to be positive for Broadcom, the companies didn't come to common opinion and stopped negotiations. Broadcom conducted a deep audit of Symantec and decided to lower the initial price of the deal for a couple of days before the estimated date of the transaction announcement.
Symantec specializes in developing cybersecurity software. Last year brought a lot of trouble to the company, after which stocks fell by 33%. In 2018, the company's chief executive officer resigned, leaving Symantec with falling demand for antivirus programs and increased competition.
Companies refuse to comment, so the true reason for stopping the transaction is unknown. This is the second case of disruption of the deal with Broadcom over the past year. As we reported earlier, at the beginning of the year the company canceled the agreement with Qualcomm at the initiative state.