{"id":10057,"date":"2018-08-19T21:02:26","date_gmt":"2018-08-19T21:02:26","guid":{"rendered":"https:\/\/www.threatshub.org\/blog\/shiver-me-timbers-symantec-spots-activist-investor-starboard-side\/"},"modified":"2018-08-19T21:02:26","modified_gmt":"2018-08-19T21:02:26","slug":"shiver-me-timbers-symantec-spots-activist-investor-starboard-side","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/shiver-me-timbers-symantec-spots-activist-investor-starboard-side\/","title":{"rendered":"Shiver me timbers: Symantec spots activist investor Starboard side"},"content":{"rendered":"

Security slinger Symantec is facing a bruising battle with activist investor Starboard Value, which has nominated five directors to the security firm’s board after having amassed a 5.8 per cent shareholding.<\/p>\n

\n

Mellanox flushes three directors at behest of activist investor<\/h2>\n

READ MORE<\/span><\/a><\/div>\n

Symantec is the outfit that spun off<\/a> its Veritas storage products business to private equity for $8bn in late 2015. The infosec firm acquired it in a $13.5bn<\/a> deal back in 2004.<\/p>\n

A board committee \u201cis evaluating the nominations put forth by Starboard\u201d, Symantec admitted in a statement.<\/p>\n

Stockholders will be able to vote on director nominations at Symantec\u2019s next AGM, currently not scheduled.<\/p>\n

The firm added: \u201cSymantec maintains open communications with its stockholders and values constructive input that advances the goal of creating value for all stockholders. Over the last several weeks, we have had a dialogue with Starboard and we plan to continue these discussions.\u201c<\/p>\n

Since Symantec spun off Veritas it has been through a turbulent period. CEO Mike Brown jumped ship<\/a> in April 2016 after Symantec missed fourth 2016 quarter sales projections. A layoff<\/a> of up to 1,200 people was announced shortly thereafter.<\/p>\n

\"Titanic<\/p>\n

Symantec: I know we said things’d get better when we sold Veritas…<\/h2>\n

READ MORE<\/span><\/a><\/div>\n

Greg Clark is the current CEO, joining via a BlueCoat acquisition<\/a> in August 2016.<\/p>\n

Financially Symantec is in a lacklustre state. Its fiscal 2018 results showed revenues of $4.846bn, up 21 per cent annually, with net income of $1.147bn, compared to a net loss in the previous year of $106m.<\/p>\n

Revenues in its first fiscal 2019 quarter (PDF)<\/a>, ended June 29, 2018, were $1.156bn, down 1.6 per cent from $1.175bn a year ago, with a net loss of $63m, albeit better than the year-ago net loss of $133m.<\/p>\n

However, first quarter enterprise implied billings<\/a> were below expectations due to a longer than expected sales cycles for large, multi-product platform sales in North America.<\/p>\n

\"A<\/p>\n

Symantec culling 8% of workforce to soak up slow enterprise sales<\/h2>\n

READ MORE<\/span><\/a><\/div>\n

Symantec downgraded its full-year guidance and its shares are down 31 per cent over the last 12 months.<\/p>\n

In fact they are down 40.8 per cent from a September 2017 peak of $32.81 to $19.41<\/a> today \u2013 great grist for an activist investor\u2019s shareholder value mill.<\/p>\n

It announced a restructuring plan on August 2<\/a> which involved an up to 8 per cent reduction in its workforce by the end of its fiscal 2019 year.<\/p>\n

To add to its woes Symantec is running an internal audit<\/a> following “concerns raised” by a former employee, which were made known to to the SEC.<\/p>\n

Due to this probe, it is also out of compliance with Nasdaq rules regarding filing its quarterly report for its Q1 of fiscal ’19.<\/p>\n

The activist investor playbook generally involves increasing shareholder value by somehow returning money to shareholders and specifically the activist investor through its stockholding. It achieves this by forcing\/encouraging a change in corporate strategy to “free up” money by cost savings and business strategy changes.<\/p>\n

That can be achieved by getting supportive directors on the target company\u2019s board, either with the company\u2019s agreement or via a proxy vote, relying on disappointed stockholders supporting the activist investor\u2019s views.<\/p>\n

Starboard has not spelled out publicly what it wants Symantec to do, however, with these nominations, has positioned its forces on the financial battleground, indicating a proxy fight tactic could be in its Symantec strategy. \u00ae<\/p>\n

Sponsored:<\/span> Following Bottomline\u2019s journey to the Hybrid Cloud<\/a><\/p>\n

READ MORE HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Time for cyber-security firm to pull up the baggywrinkle? Security slinger Symantec is facing a bruising battle with activist investor Starboard Value, which has nominated five directors to the security firm’s board after having amassed a 5.8 per cent shareholding.\u2026 READ MORE HERE…<\/p>\n","protected":false},"author":2,"featured_media":10058,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[63],"tags":[],"class_list":["post-10057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-register"],"yoast_head":"\nShiver me timbers: Symantec spots activist investor Starboard side 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security & Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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