Everybody's Doing It
VeriSign (VRSN) became the second internet conglomerate in as many weeks to split up. Is there a trade here?
VeriSign Inc which makes switchboards that direct Internet traffic, said it will divest its slower growing units and focus on Web site-naming and Internet security services, under a plan that could cut its workforce in half.
Once the strategy shift is completed, the company said it expects revenue growth, profit margins and net income "will be higher." Verisign expects to complete the restructuring by the end of next year, or early 2009.
VRSN could be a buy as it breaks-up Pete Najarian said. It’s probably not a “today” story, but it’s worth keeping an eye on, he added.
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