Broadcom’s $10.7B acquisition of Symantec’s enterprise security business moves forward, as Avago’s ‘growth by acquisition’ strategy continues to play out. Semiconductors is one business, enterprise security software, an entirely different one. It will be interesting to watch how Avago’s Hock Tan and his penchant for streamlining operations impacts the company post-acquisition.
Broadcom explores Symantec purchase. Is it really smart diversification, or simply a way to impress shareholders? I’m not so sure. In fact, I’m bearish on this move, mostly for Symantec. However, don’t be surprised if it happens, as Tan is known to be a shrewd negotiator and one who will make the deals he needs to happen to get shareholders the value they are looking for.