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Symantec Corp. said it's splitting into two companies
Oct. 10 (Bloomberg) -- Symantec Corp. said it's splitting into two companies, a move that reverses a decade-old expansion effort by the biggest maker of security software.
Symantec said in a statement yesterday that its cyber-security and data-storage divisions would become separate publicly traded companies. The Mountain View, California-based company said it made the decision after an extensive business review and had concluded it needed to be nimbler and more focused.
"It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation," Chief Executive Officer Michael Brown, who was promoted to the role last month, said in the statement. "Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value."
Analysts and investors have long sought a breakup of the company, which has a market capitalization of $16.2 billion. They have argued Symantec's businesses weren't compatible, and that the company's stock price was being hurt by fusing the high-margin security business with the less profitable storage division. Bloomberg News reported Oct. 8 that Symantec was exploring the split.