Broadcom CEO Hock Tan

Broadcom’s reported bid to buy Symantec will likely raise questions on the chipmaker’s strategy, a Morgan Stanley analyst said.
Broadcom has been focusing more on buying software companies, but it’s unclear what it hopes to gain from buying the struggling cybersecurity software giant, the analyst said.
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Broadcom’s reported plan to buy Symantec doesn’t entirely make sense and will likely raise questions on the chipmaker’s strategy, a Morgan Stanley analyst said in a note.

Broadcom was reported to be in “advanced talks” to buy cybersecurity giant Symantec, which sparked a rally in the cybersecurity giant’s shares this week. The stock closed at $25 Friday, up more than 20% from Monday. Broadcom’s stock closed at $282.66, off 6% in the same period.

Broadcom was also reportedly considering buying cloud software company Tibco, according to CNBC.

If the reports are true, the move highlights Broadcom’s plan to focus its M&A strategy on software companies, Morgan Stanley analysts Craig Hettenbach said in a note. But he said it’s unclear what Broadcom would gain from buying the struggling software giant, he wrote.

Read more: Broadcom tells Wall Street it will focus on acquiring software companies, a year after the …read more

Source:: Businessinsider – Technology

      

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