Why Did Symantec Take a $500 Million Investment?

Symantec is the king of tech security. Yet the Norton antivirus software maker just took a $500 million strategic investment from Silver Lake Partners, a firm known for making technology investments in companies like Dell. The question is why?

Why exactly would the king of tech security need such a massive amount of cash from an outside investor? Has something gone wrong inside the company?EU?s software machine? What does this investment ultimately mean for users?

We asked Rob Enderle, principal analyst at the Enderle Group, for some answers. He told us sometimes stable companies like Symantec take outside investments to showcase that a quality firm with strong financial skills thinks the brand is a good bet. The goal in that scenario is to get financial analysts and investors at large more interested in the property, Enderle said.

?EU?It makes it look like there is some really good news on the horizon which only someone in the know has access to or has figured out. That may be an attempt to break the company up for its parts and sell some or all of those parts to other Silver Lake investments,?EU? Enderle said. ?EU?But clearly Silver Lake sees a value here and that may be enough to drive interest back into this property.?EU?

Symantec?EU?s Motive?

Earlier this week, Symantec reported net income of $170 million, or 25 cents a share, in the fiscal third quarter of 2016. That compares to $222 million, or 32 cents a share, in the year-ago period. Revenue hit $990 million, that?EU?s up $20 million from a year ago, beating analyst expectations of $906 million, according to a Marketwatch report citing FactSet.

But can the company keep up those numbers given the PC forecast? Although 71 million units shipped in the third quarter of 2015, that number marks a year-over-year decline of...

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Why Did Symantec Take a $500 Million Investment?

Symantec is the king of tech security. Yet the Norton antivirus software maker just took a $500 million strategic investment from Silver Lake Partners, a firm known for making technology investments in companies like Dell. The question is why?

Why exactly would the king of tech security need such a massive amount of cash from an outside investor? Has something gone wrong inside the company?EU?s software machine? What does this investment ultimately mean for users?

We asked Rob Enderle, principal analyst at the Enderle Group, for some answers. He told us sometimes stable companies like Symantec take outside investments to showcase that a quality firm with strong financial skills thinks the brand is a good bet. The goal in that scenario is to get financial analysts and investors at large more interested in the property, Enderle said.

?EU?It makes it look like there is some really good news on the horizon which only someone in the know has access to or has figured out. That may be an attempt to break the company up for its parts and sell some or all of those parts to other Silver Lake investments,?EU? Enderle said. ?EU?But clearly Silver Lake sees a value here and that may be enough to drive interest back into this property.?EU?

Symantec?EU?s Motive?

Earlier this week, Symantec reported net income of $170 million, or 25 cents a share, in the fiscal third quarter of 2016. That compares to $222 million, or 32 cents a share, in the year-ago period. Revenue hit $990 million, that?EU?s up $20 million from a year ago, beating analyst expectations of $906 million, according to a Marketwatch report citing FactSet.

But can the company keep up those numbers given the PC forecast? Although 71 million units shipped in the third quarter of 2015, that number marks a year-over-year decline of...

Comments are closed.