Broadcom Still Interested In Making Deal To Buy Symantec: Report

Broadcom still wants to find a way to move forward with purchasing Symantec, and more than 20 banks remain on standby to back Broadcom's blockbuster acquisition, according to the Financial Times.


Broadcom still wants to find a way to move forward with purchasing Symantec, and the two sides could resume discussions if they hammer out differences over valuation, according to the Financial Times.

More than 20 banks are still on standby to back Broadcom's blockbuster acquisition of Symantec after the San Jose, Calif.-based semiconductor manufacturer locked down financing for the deal, the Financial Times reported. A steep drop in Symantec's stock price after CNBC reported early Monday that deal talks had been halted could put pressure on Symantec's board, sources told the Financial Times.

Bloomberg similarly reported that talks between Broadcom and Symantec could resume if both parties are able to compromise on price or if Symantec comes under enough pressure to re-engage. Neither Broadcom nor Symantec immediately responded to requests for comment from CRN.

Sponsored post

[Related: Broadcom, Symantec Halt Acquisition Negotiations: Report]

Broadcom initially agreed to pay $28.25 per share for Symantec, valuing the Mountain View, Calif.-based cybersecurity giant at $17.5 billion, or $20 billion including debt, both the Financial Times and Bloomberg reported. But as Broadcom was finalizing its due diligence over the weekend, it discovered new information that prompted the firm to try and cut the purchase price by more than $1.50 per share.

Symantec, however, would not accept an offer of less than $28 per share, CNBC had reported. Prior to the collapse in talks, Broadcom and Symantec had been prepared to announce the transaction as soon as Tuesday, according to Bloomberg.

Symantec's stock down is down $2.90, or 11.34 percent, to $22.67 per share in trading late Monday, which is improved from losses of $3.90 per share prior to the publication of the Financial Times story just after 2 p.m. ET Monday. Broadcom's stock, meanwhile, is up $3.85, or 1.35 percent, to $289.24 per share.

Bloomberg first reported late July 2 that Broadcom was in “advanced talks” to buy Symantec, with a follow-up report from the publication on July 8 indicating that Broadcom could value Symantec at more than $22 billion including debt.

Symantec's stock had soared 22 percent after the initial Bloomberg report, which was the highest the company's stock had traded since May 2018. Broadcom's stock, meanwhile, fell by 5 percent after the first Bloomberg story was published.