Symantec reportedly in talks to split into storage and security units

The reported plans are in line with similar strategies announced by Hewlett-Packard and eBay

Taking a cue from Hewlett-Packard and eBay, Symantec is said to be in talks to carve out the company into two entities.

One of the entities will focus on storage while the other will address the security business, reported Bloomberg, citing people who asked not to be identified because the conversations are private.

An announcement of the split, which is supported by CEO Michael Brown, could be made in a few weeks, according to the report.

Symantec's spokesperson, Kristen Batch, said via email that the company does not comment on rumors.

Brown, who was Symantec's interim president and CEO since March this year, was appointed last month to the CEO position. After he took over, Symantec has returned to year-over-year revenue growth and has consistently exceeded its revenue and operating margin guidance, the company said. Symantec had in March fired its former CEO and president Steve Bennett, the second CEO to go in less than two years.

The Mountain View, California, company has explored and dropped the idea of a split in the past, according to Bloomberg, which quoted a person with knowledge of the matter.

Symantec reported in August that revenue in the first quarter of its fiscal year 2015, ended July 4, 2014, was $US1.7 billion, up 2 per cent from the same quarter last year. Net profit at $US236 million was up 50 percent in the quarter. Symantec's information management business, focused on backup and recovery, archiving, storage and high availability solutions, accounted for 37 per cent of revenue. The balance of revenue came from its information security, and user productivity and protection businesses.

Recent moves by tech companies suggest that they are looking at having nimbler operations, focused on specific businesses. HP, for example, plans to split by Oct. 31 next year into two companies, one addressing its printer and PC business, and the other addressing the enterprise market.

EBay said last month its board had approved a plan to split the company by the second half of next year into its eBay and PayPal businesses.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags securitybusiness issuesstorageHewlett-Packardebaysymantecrestructuring

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?