Symantec: The Next To Go?
Could Symantec (SYMC) be the next software company to sell? Some people seem to think so. With today’s software sector acquisition news - Oracle (ORCL) is buying BEA (BEAS); Sun (JAVA) is buying MySQL - the ranks of significant-sized enterprise software companies continues to thin. Buying Symantec would be so small matter: the company has market cap of $14 billion; give it a reasonable premium and you would be pushing $20 billion. There aren’t a whole lot of software companies that could do a deal that size, but there are a few - Hewlett-Packard (HPQ), for one, has previously been rumored to be interested.
On the surface, Symantec seems reasonably priced, at under 14x the Street consensus EPS estimate for the March 2008 fiscal year, and about 2.4x estimated revenues. Whether the stock is actually in play, or simply the subject of random speculation, I have no idea. Opinions?
Symantec today is up 74 cents, or 4.8%, at $16.14.
Symantec is in a tough spot. Not exactly a growth company, and too large to easily digest for most potential suitors. Sun’s acquisition of MySQL was a brilliant move but Sun will also face five new challenges related to the deal, according to The VAR Guy.
Sounds like wishful thinking. That said, SYMC is a cash cow, albeit a poorly run and disorganized one. Still, it has some nice businesses.
wishful thinking, but there is some value left in the consumer av business, despite that microsoft is already eating share. SYMC is probably worth 8-10 a share, and a buyer will not emerge until it reaches 5-6 per share.
Most people don’t need Symantec’s Products.
AVAST has a great Anti-virus and protection software and it is free. So why pay for Symantec ?
Paddy Mahon is peddling crap again…sigh. AVAST is free, yet it still fails to win most in-the-wild threat tests. With AVAST, you get what you pay for…
SYMC wins PC Magazine awards for best products, what has AVAST won again???
AVAST! might NOT be the best anti-virus on the market, but Symantecs products reek. Just bought a new H-P laptop and the first thing I did was delete all Symantecs files. CA and Trend-Micro are MUCH better and less buggy products.
we got our share of issues here at SYMC, that’s why I sell in every open window
Symantec is a lot more than antivirus,i.e. after Veritas merge is leader on availability Sw for large enterprise …
Symantec may have gained a lot from the veritas merger but it will sell off more and become weaker everyday. They are losing hold. Wait a little I think it would be cheaper before too long.
The consumer av business should no longer be symantec’s target. Too many players already offer free solutions. Most people will take that over industry rewards and recognition. Focus should be given to corporations and business.
Also evaluate their product suite…just a giant collection of smaller vendors with yellow boxes. Their growth by acquisition strategy will fail due to their lack of integration between products, and not to mention, higher prices in a market of almost-commodities.
SYMC has been on a downward slide ever since its merge with Veritas. They are clutching at straws to hit 10 by 10, 10 billion by 2010, the CEO no longer mentions this and symc employees face reductions in force every quarter. Who remembers 32 dollars a share pre merge?
This is crazy talk.. SYMC has been out there forever and has the largest marketshare in security and backup/recovery products. They’ll do just fine - certainly helps refine the business when you sell off the performance products.. those things were money wasted from Veritas years ago..
Ups and down come in the history of any big company. The oppurtunists are always awaiting such time to pull down the rising ones. The fact is Symantec is still market leader in its domain. It is no more just security/anti-virus company but a infrastructure company providing Security, storage-Backup and compliance. The vision is futuristic and right efforts are being put. Coming time will bring good result for the company.
just look past history
Norton 360!!!!!!!
Seriously…Paddy Mahon, most people don’t need their product…they are the leader in anti-virus software…most computers have it…and NEED it, along with a host of other types of software that SYMC puts out!!!
Singh hit the nail on the head. “Security”. It is the single most important word in business today and Symantec is on the forefront of providing these services.
Ok heres the inside word, Symantec have the #1 product as rated by Gartner in a range of product lines , as for the AV, 35 or 36 VB100% awards in a row unmatched ! by anyone. Plus who would you trust MS ? I mean they cant even secure XP after 5 years! Symantec are still #1 in retail #1 in corporate #1 in government. Try the internet without security for a day and see how you go! I have used them for years and never been hit, hacked or had my machine fail. Most people blame vendors however most people dont know how to even use a basic PC. WAKE UP PEOPLE - Symantec is still #1 ( they can always do better and they have just shown that they can ! AGAIN !) cheers !
It’s funny to see how quick people are to comment on Symantec when it is clear they are making themselves look uneducated. The product breadth is staggering and they currently run marketing leading categories in consumer and enterprise business. There is more to symantec than yellow boxes. True, they are mismanaged and run in product silos, but the product is still solid and more than AV. So if you think free shareware etc is the best way to protect your business or assets, please do not assume you are educated on Symantec’s capabilities or industry knowledge.
1. Symantec’s mamangement is all about doing deals, and nothing about meeting user’s needs through great products.
2. They know nothing about delivering software to corporations, or supporting those customer after a sale.
They have the stink of death about them.

Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.