Symantec tanks after CNBC reports that the company has ceased deal talks with Broadcom

Evan Vucci/AP

Broadcom CEO Hock Tan

• Symantec and Broadcom have ceased deal negotiations because Symantec would not accept less than $28 a share, according to CNBC.
• Shares of Symantec tanked on the news that the deal had fallen through.
• Broadcom has been on an acquisition streak, even though analysts questioned why it would purchase Symantec.
• Watch Symantec trade live on Markets Insider.

Symantec and Broadcom have ceased deal negotiations, according to CNBC's David Faber. Sources told CNBC that Symantec would not accept less than $28 a share.

Shares of Symantec, a cybersecurity company, plummeted more than 14% on the news Monday. Shares of Broadcom were up slightly, climbing more than 2.5%.

The news comes just days after Broadcom secured the financing it needed to acquire Symantec, according to a Bloomberg report. The deal was expected to value the cybersecurity firm at more than $22 billion including debt.

Broadcom has been on an acquisition streak as of late. Earlier this year, the chipmaker said that it would focus on buying software companies after its hostile $117 billion bid to take over competitor Qualcomm was blocked by the Trump administration. Broadcom acquired CA Technologies, another software company, for $18.9 billion in July 2018. It's also reportedly been considering buying Tibco, a cloud software company.

A deal with Tibco would only go forward if the deal with Symantec fell through, CNBC reported. Analysts have been skeptical. In a note, a Morgan Stanley analyst wrote that the chipmaker's plan to buy Symantec raised questions about its overall strategy.

Shares of Symantec have climbed 17% year to date.

Markets Insider