Today: Symantec announces it will spin off its storage business, following Hewlett-Packard, eBay and others in a flood of Silicon Valley corporate splits. Also: Riverbed Networks may be up for sale as earnings season begins.
The Mountain View company, the largest security company in Silicon Valley, confirmed reports from earlier this week that it would spin off its storage business as part of an effort to remake the company. HP made a similar move Monday, divulging plans to create a business focused on consumer tech and one on enterprise software and services, while eBay said last week it would spin off its PayPal online-payments service into a separate company.
Symantec is the 12th-largest Silicon Valley tech company overall in terms of sales, with $6.8 billion in 2013 revenues. With its announcement, Symantec is the fourth company in the top 15 to make such a move of late: Besides HP and eBay, former HP spinoff Agilent announced a split in late 2013. In addition, Milpitas networking firm JDS Uniphase said last month it would cleave its business in two.
Symantec stock gained slightly in late trading following the announcement, moving to $23.75 after closing with a 2.4 percent decline at $23.44. Symantec stockholders will receive tax-free shares in the new storage company when the spinoff is complete, which the company said would happen by the end of 2015.