Symantec is dividing itself into two separate publicly-traded companies, its board of directors announced on Thursday. One business will focus on Symantec’s legacy security technology, and the other will specialize in data management.
Michael A. Brown will become the president and CEO of the Symantec security company while John Gannon will take over as general manager of the other business line.
Symantec claims that this separation will allow both of the operations to streamline themselves and grow more effectively. Symantec’s security business counted $4.2 billion in revenue for the 2014 fiscal year while its data management services generated $2.5 billion in that same period.
The Symantec split highlights a trend of big-name tech companies cutting themselves up into smaller pieces for the sake of shareholders who love demanding more. Hewlett-Packard just separated its PC-and-printer lineup from enterprise computing and eBay is casting off PayPal as its own company. Meanwhile, Elliott Management has been clamoring for EMC to break itself apart and have VMware stand alone.
As for other companies that could benefit from splitting up, Cisco could be a prime candidate, according to RBC Capital Markets Analyst Mark Sue who my colleague Barb Darrow corresponded with earlier this week.
“Our surveys show Cisco has too many people, often takes too long to get things done and has become reactive to changing market dynamics,” Sue wrote.
Post and thumbnail images courtesy of Shutterstock user Gwoeii.