As far as leading corporations firms are concerned, it is a well-known fact that many of them seek to grow their business further with key acquisitions that can add more value and that seems to be a strategy of chip manufacturing giant Broadcom. The company had been trying to acquire big-ticket software or chip manufacturing firms for quite some time, and in fact, it failed to acquire chipmaking giant Qualcomm last year. However, it seems that Broadcom is going to be successful with its plans to acquire the cybersecurity firm Symantec in a deal that is believed to be worth north of $15 billion.
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The sources which are close to the developments have stated that the announcements could be made on Wednesday, but at the same time, it has been reiterated that the deal has not been signed and sealed yet. In fact it is believed that even if the deal is signed, it could be announced after the 4th of July holiday in the United States. Broadcom has always been known for growing through acquisitions, but last year its move to acquire rivals Qualcomm was foiled after the deal was blocked by Donald Trump, the United States President. Hence, the company has changed tack and decided to look instead to acquire software firms, so that anti-trust issues do not crop up.
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The Broadcom deal-making spree has been something to behold over the past year or so. In 2018, it bought CA Technologies for $18.9 billion and even now the American company is hungry for deals that will consolidate its position in the global tech industry. When the news of the acquisition broke, the Symantec shares rose by as much as 20% and added a staggering $3 billion to the company’s value. That being said, another big acquisition did not go down well with the shareholders of Broadcom. The company’s stock dived by as much as 4% after the news of the acquisition hit the wires and the company lost $ 5 billion in value in the process.
