Symantec (SYMC) Stock Runs On Potential Acquisition

Symantec SYMC Stock News

Symantec Corporation (NASDAQ: SYMC) is running for the top in the market this morning, trading on gains of more than 10%. The gains come after news broke that the company is close to reaching an agreement to be acquired by Broadcom Inc (NASDAQ: AVGO). Here’s what’s going on:

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SYMC Stock Climbs On Potential Deal With AVGO

Symantec Corporation is no stranger to talks about potentially being acquired by Broadcom. In fact, talks between the two companies have been going on for some time.

Symantec is looking for strategic options as the company struggles with competition in its space. In fact, these struggles have led to several top level executives leaving the company this year.

Moreover, SYMC is being investigated by United States regulators that’s associated with an accounting regularity.

All in all, the company is in a bit of trouble and needs to make a strong strategic play to dig out of its hole. Of course, an acquisition would be a great strategy as it would likely provide investors with a strong and immediate return of value.

Nonetheless, according to several reports, the two are back in talks after SYMC walked away from negotiations with AVGO last month. The two simply couldn’t come to an agreement surrounding price.

These reports suggest that the two companies are in advanced talks. The goal of the talks is for Broadcom to buy Symantec’s enterprise business according to sources familiar with the matter.

The reports suggest that a deal could be announced as soon as today, but of course, that’s no guarantee.

If a deal does take place, it’s likely to be an incredibly high value one. In fact, experts suggest that SYMC would be worth around $10 billion in a takeover.

Be Careful

While the sources of these reports are outlets with very good reputations, I was unable to reach either side to verify that takeover talks are in the works. The truth of the matter is that even if these reports are on point, there’s no guarantee that a deal will actually take place. After all, SYMC did walk away from talks last time, and there’s a possibility of that happening this time.

While a deal would likely lead to an incredibly return for investors, these types of stories don’t always end in a deal and if talks break up, the stock could see declines. So, be careful if you plan on trading this news!

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