Security & Fraud

Rumor Mill: FireEye Has Turned Down Two Buyouts

FireEye Rejects Buyout Offers

Cybersecurity firm FireEye may have passed on several takeover proposals earlier this year.

People close to the matter told Bloomberg that the company also hired Morgan Stanley to field interest, the media outlet reported on Wednesday (June 15).

According to Bloomberg’s sources, FireEye reportedly turned down offers from at least two parties that came in below its set expectation of receiving $30 or more per share. On Wednesday, the company’s shares rose to $16.61, bringing the company’s valuation to roughly $2.76 billion.

Though FireEye has yet to comment on the reports, it’s being speculated that one of the potential buyers was Symantec, the maker of Norton antivirus software.

Last month, it was announced that the firm’s current CEO, David DeWalt, will be replaced by Kevin Mandia.

The announcement came alongside the release of FireEye’s earnings, which disappointed investors. The firm lowered its forecast for 2016. FireEye said it looks to garner total sales in the range of $780 million to $810 million. And that is significantly lower than its previous estimate of $815 million to $845 million. The Street had a $829 million tally coming into the quarter. Competition has been eating into results as the firm endures market share wars with Palo Alto Networks and others. Job cuts have also been in the offing.

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