Symantec, the Anti-Virus Leader is Splitting Into Two Companies

Symantec, the Anti-Virus Leader is Splitting Into Two Companies

by Pete Daniel on 11 October 2014 · 1205 views

Symantec, the antivirus giant, has decided to divide their business into two operating businesses which will both be publicly traded entities. The first will be focused on the Norton Antivirus security packages and the second will be targeting other security concerns and the management of information for enterprises.

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Two Is Better Than One?

There is something of a craze going on with technology companies presently that are conducting internal operational reviews and subsequently deciding to split up their companies in order to be compete. Both Hewlett Packard and then PayPal decided it was better to divide up in order to conquer. Usually corporations believe that size matters partly because it enables them to list on the stock market and raise lower cost financing when it is needed but shareholders are suggesting different.

This is the opposite approach to the Virgin Group with Sir Richard Branson who owns more than 300 separately incorporated companies that are individually operated. His belief being that smaller teams with tightly focused operational goals will deliver better results that one large company can do. It appears that some of the larger businesses are beginning to reconsider their approach.

Improved Strategic Opportunities

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In the case of Symantec, Michael A. Brown the company president and CEO commented that the separation was needed in order that both parts of the current business could focus on their different optional goals. Each area has unique growth possibilities and needs to invest in research and development differently in order to achieve their potential. The business separation will also allow each unit to make new partnerships that don't clash in competing business lines, look at different possible acquisitions and allocate capital differently.

The Symantec business generated $4.2 billion in 2014 from its security business and a further $2.5 billion from its information management business concern. The Symantec board voted for the change and the stock of Symantec fell slightly on the news.
http://investor.symantec.com/investor-relations/press-releases/press-release-details/2014/Symantec-Announces-New-Strategy-to-Fuel-Growth-and-Plans-to-Separate-into-Two-Public-Industry-Leading-Technology-Companies/default.aspx

Cyber Security Growth Story

Cyber security is big business and growing at a 30 percent clip presently. New products are expected from the security company soon that will better help enterprises protect from the growing threat to their data security beyond what Norton Antivirus security products are able to deliver. It also means that the busy team behind the Norton Antivirus range of software products can have a singular focus on their excellent security packages to protect consumers and small business.

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