Symantec Joins a Chain of Tech Companies Opting for Split

Renowned antivirus software manufacturer, Symantec, recently announced plans to divide its operations into two separate publicly traded entities. The decision echoes similar strategic shifts by tech giants such as Hewlett-Packard (HP) and eBay.

This calculated move will see one arm of Symantec focusing solely on security-related services while the other will cater to storage requirements. It’s an understandable decision considering the evolution of software market dynamics, where an increasingly prominent trend has been to provide specialized services rather than bundling a multitude of functionalities.

Circumstantial economic pressure seems to have influenced Symantec’s decision. Over the recent years, analysts have observed the company grappling with slow growth in the PC market, which has resulted in an underperformance in earnings and stagnant share price.

This has led to a reshuffling in Symantec’s leadership, with two chief executives parting ways with the company since 2012. The company’s financial struggles became evident when its revenue suffered a 3% fall, with the struggling storage business being a significant contributor to a nearly 20% fall in operating income.

The proposed split reportedly furthers the company’s appeal towards potential buyers, suggesting an increased likelihood of corporate acquisitions. Piper Jaffray analyst Andrew Nowinski speculates tech titans like Cisco and NetApp could express interest in Symantec’s California-based businesses.

This speculated investment interest could rejuvenate Symantec, a company that has been a staple of the tech industry for years. This restructuring may prove to be the strategic move Symantec needs to regain its lost momentum and stride confidently into their future.

Source Attribution: Information for this report was sourced from The BBC technology site.

This article was updated in 2025 to reflect modern realities.

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