Broadcom and Symantec have been negotiating a deal this year but, it seems, they have ceased their talks, at least for now. According to people familiar with the conversation, the deal cannot continue because Symantec will not accept anything less than $28 per share.
Earlier this month—when it was announced that they were in advanced talks with Broadcom—Symantec share price surged, in hopes they would acquire the security software vendor. At that time, it was reported that the two sides had been negotiating a price that could have been around $1.5 billion.
And with these negotiations come to a close, Symantec shares plummeted 12.8 percent, to $22.30, resulting in a market value of about $14 billion. Broadcom shares, on the other hand, posted up 2 percent, at $291.32.
Now, Symantec has been criticized over the past few years as management turnover and a slowing core business have put a strain on them. Indeed, Symantec has had a hard time competing with new cloud security companies to come to the market, capturing a significant amount of shares thanks to new companies offering better ways to protect mobile devices. But the departure of several top executives, most notably CEO Greg Clark, has certainly made its mark.
This is also at a time when chipmaker Broadcom has been on a bit of an acquisition stride. Last year they bought CA Technologies for $19 billion. They also tried to buy Qualcomm but the US Department of Justice blocked that deal.
On top of that, Broadcom has also been looking to scoop up an infrastructure company, and Tibco may be at the top of that list. However, Vista Equity Partners had acquired Tibco in 2014 for $4.3 billion.
Should Broadcom manage to acquire a software company, it could give them a much needed boost while international trade tensions continue to hurt their semiconductor business. In particular, Broadcom has seen its relationship with Chinese telecommunications giant Huawei take the biggest hit. Indeed, Broadcom reduced its chip sales forecast by $2 billion after Huawei was prevented—and blacklisted—from buy any US technologies, in May.