CNBC said the failure was due to a disagreement on price. And while some analysts said Symantec would be a ideal fit for Broadcom, others noted that it comes with several challenges, including increased competition, the abrupt departure of its CEO, waning consumer interest in antivirus programs and a financial investigation that ended with restated earnings.
Symantec and Broadcom have ceased deal negotiations because Symantec would not accept less than $28 a share, according to CNBC. Symantec shares fell as much as 15% to $21.70. At the Nasdaq close on Monday, its price was $22.75.
It could not be determined why the price negotiations broke down.
The companies did not immediately respond to Reuters requests for comment.
In May, former Symantec CEO Greg Clark left abruptly and Richard Hill, a member of the company's board, took over as interim president and CEO. While Hill promised to focus on fixing issues within the endpoint security firm and increasing sales, the stories about the Broadcom deal seemed to show that Hill was also looking for a buyer for the company (see: Symantec CEO Exits as Company Misses Earnings Forecast).
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While Symantec has struggled, Broadcom has been expanding.
Broadcom is seeking to diversify further into software after acquiring CA Inc for nearly US$19 billion past year.
Not every deal that Tan has worked on, however, has worked out for Broadcom.
"With no other strategic or financial bidders that we see throughout the landscape, we view this decision by Symantec and its board as a major "head scratcher" given the myriad of challenges the company has on the horizon", he said. Bloomberg first reported late July 2 that Broadcom was in "advanced talks" to buy Symantec, with a follow-up report from the publication on 8 July indicating that Broadcom could value Symantec at more than US$22 billion including debt.
McAfee reportedly is planning to again become a public company.
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