Symantec (NASDAQ:SYMC) could be divided into two companies


The producers of the famous and well known software for computer security, Symantec (NYSDAQ: SYMC) Corp has been recently heard to divide their business into two separate and completely different entities responsible for different products in the market. One of them would provide the software which provides computer security and the other branch of the company is in the business of data storage. According to Bloomberg this announcement will officially be made a few weeks later.

These rumors, when asked to confirm from the authorities at Symantec (NYSDAQ: SYMC), were neither declined nor supported when Reuters asked the spokesperson of the company, Kristen Batch, though an email.

Symantec (NYSDAQ:SYMC) is considered to be the best at what it does and it was reported by Reuters in April that the company was looking for some reputable banks that would be able to provide them with adequate advice. The advice that they required was related to the subject of chalking out a strategy to protect the company from attacks from activist investors.

The possibility of breaking and splitting up of this firm was very much awaited by various private equity firms. They were waiting for the company to be divided into smaller working entities and some of these entities would attract some wealthy peers from the industry at large.

The process of splitting up the business of Symantec (NYSDAQ:SYMC) is expected to leave the overall position of Symantec (NYSDAQ:SYMC) as a more exposed acquisition target for all the major and large scale companies like Hewlett-Packard Co and the EMC Corp who are interested in acquiring computer security software businesses along with a storage businesses.

This company, the producer of an exceptional product called the Norton Antivirus, was reported to have fired their CEO out of blue earlier this year. They were struggling to make sure that they can get their growth back on track when the sales of personal computers are going down. Since Symantec (NYSDAQ:SYMC) sells their product bundled up in new computers, this fact is seriously affecting their bottom line.

The problem is that both their software business as well as the data storage business of the company is moving downhill and its growth revenue is in the negative during the current quarter of this year. The move of separating the two companies will be beneficial as they can concentrate on their individual growth strategies and fix the sales market. The rest of the software business in the market on the contrary is growing wonderfully at the rate of 10 to 15 % in a year.

The growth of the business was severely daunted by the failure of the company to gain a solid footing in the domain of mobile security, hence the noticeable reduction in the demand of the software that has to be bought every time you buy a new computer is having dire consequences for the company. Symantec, if it breaks up, would join other technology companies trying to become more agile by splitting up, like PayPal and HP.