CEO of Broadcom, Hock Tan is now considering buying old companies from the public market that are not in much popularity these days. Last year, Broadcom was blocked by Trump Administration from buying the chip maker giant, Qulacomm and the firm is moving their focus towards software companies.
Broadcom agreed about a year ago to acquire 42 year old software developing firm, CA Technologies at$19 billion. As per the reports, they are now going to acquire Symantec, 37 years old vendor of security software. Symantec has been plagued by some financial and C-suite issues.
However, a major media platform has confirmed that this process is underway and Broadcom is looking forward to buy Symantec. Broadcom is considering about an infrastructure software firm i.e. Tibco. Tibco was bought by Vista Equity Partners in 2014 for $4.3 billion and they were considering selling it, last year.
As per the confidential sources, the deal with Tibco or any other firm might get delayed if the acquisition of Symantec gets confirmed. People also motioned that Tan is determined to make some large acquisitions in this year. This is the reason why he has set different Broadcom advisors so that both the deals materialize. If Broadcom becomes successful in this move then it would mark a huge fundamental shift for the firm getting a huge revenue chunk and they will also be counted in the top buyers of processors.
Broadcom is a semiconductor manufacturing firm and their business is in bad shape, especially since Huawei, a Chinese networking giant had been blacklisted by US from buying equipments in May. Broadcom has made a major cut of $2 billion in their forecast of semiconductor sales as they already had a drop of 10% in sales and there might be more in first half of this year.