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

In this Nov. 2, 2017, file photo, Broadcom CEO Hock Tan speaks as President Donald Trump listens during an event to announce the company is moving its global headquarters to the United States, in the Oval Office of the White House, in Washington. The highest-paid CEO in Equilar's analysis was Hock Tan of Broadcom, who made Dollar 103.2 million. The vast majority of Tan's compensation came in the form of a stock grant, valued at Dollar 98.3 million. (Broadcom CEO Hock TanEvan Vucci/AP

  • 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.

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