Symantec to split up company into two, says Bloomberg

<p>One company would sell security programs, while the other one would focus on data storage.</p>

Security software maker Symantec Corp is planning to split its business into two entities, according to a report from Bloomberg.

The first company would sell security programs, while the other one would focus on data storage. Symantec declined to comment on the move: "The company does not comment on rumours," spokeswoman Kristen Batch said.

The separation into two distinct entities could lead to acquisitions, given that large companies including EMC Corp and Hewlett-Packard Co are interested in the stand-alone security business or in an independent storage business, according to Bloomberg.

This announcement comes as Symantec has seen revenue growth turn negative in recent months, mainly due to slowing PC sales, affecting demand for its software.

If Symantec goes ahead with the plan, it would become the latest company to do so in a series of Silicon Valley technology companies that have been splitting into smaller pieces in recent months.

Hewlett-Packard has announced this week that it will be transforming its better-performing computer and printer business and its corporate hardware and services operations into two different entities. 

It continues the company's restructuring programme which has resulted in a raft of job losses over the past few years.

Online auction site eBay has also revealed last month it will split from its payments system PayPal into a separate company in the second half of 2015.

Chief executive John Donahoe said: "A thorough strategic review… shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively."

Symantec rose 1.5 per cent to $23.54 (£14.6) at 10:02 ET today (October 8th) in New York. The stock had lost 1.7 per cent this year.

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