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Fireworks Start Early for Symantec with Broadcom Acquisition Talks

Streetwise Reports, Streetwise Reports
0 Comments| July 6, 2019

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Internet security leader Symantec's shares are soaring today on reports of advanced merger discussions with chip maker Broadcom.

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Symantec Corp. (SYMC:NASDAQ) shares are up more than 13% on high volume today after reports of advanced merger discussions with Broadcom Inc. (AVGO:NASDAQ). Neither Symantec nor Broadcom have released any details, but the market action indicates that a deal may be imminent. Speculation in the markets today is that Broadcom will pay a price between $25–28/share for Symantec or about $15.5–$17.6 billion. There are not any details yet regarding whether this would be a merger of shares, a cash deal or some combination.

With a market cap of $119.6 billion, approximately 10 times Symantec's $13.6 billion, Broadcom appears to be looking to diversify and make a major push into cybersecurity and software. Bloomberg reported Tuesday night that serious talks were underway between the two companies. The report indicates that Broadcom would have to pay a pretty high price for Symantec.

Symantec Corp. is a leading cybersecurity firm whose products are used by individuals, companies, governments and organizations worldwide. The company's Norton and LifeLock product suites provide services to more than 50 million users.

Broadcom is a designer, developer and global supplier of semiconductor devices for enterprise and data center networking, servers and storage systems, home connectivity, set-top boxes, telecommunication equipment, smartphones, and much more.

Symantec shares traded more than 23 million shares in the first hour of trading, which is triple the 50-day and 200-day average daily volume. The firm's shares are currently trading at $25.02/share, up $2.92/share (+13.20%) over Tuesday's close of $22.10. As the potential acquirer, Broadcom's shares are down more than $11.07 (-3.72%) off the July 2nd close of $295.33 per share in a holiday shortened trading day.


Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.



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