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Broadcom-Symantec Enterprise Deal: How It Came To Be, What Will Happen Now

Here's a deep dive into why Broadcom plans to buy Symantec’s enterprise security business for $10.7 billion and how Broadcom plans to improve the profitability and go-to-market strategy of the underperforming business.

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1. Consumer, Enterprise Units Have Cross-Licensed Tech, Will Continue Sharing Threat Intel

Symantec's consumer business will continue sharing threat intelligence data with the enterprise security business even after it becomes part of Broadcom, Hill said. The enterprise environment tends to be more benign since corporations control cyberthreats at multiple points in their network, Hill said, while consumers are subjected to more potential viruses since they're able to go anywhere on the internet.

As a result, both Symantec's consumer and enterprise divisions will continue to enjoy the benefit of diverse threat intelligence data, Symantec CTO Hugh Thompson told investors. The agreement will allow both sides of the company to benefit from the intellectual property and code base Symantec has built around its endpoint technology over the course of its history, Thompson said.

The cross-licensing agreement for the technology goes both ways, and patents that cover overlapping capabilities between the two organizations with be shared, Hill said. The patents most closely aligned with Symantec's consumer business will remain with the company, Hill said, while the ones most closely aligned with the enterprise business will go over to Broadcom.

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