Fireeye Inc FEYE

This awesomely named firm sells advanced security software to businesses.

A cyber security firm being hacked at this scale is a big deal. Surprised stock is only 7.5% down after hours. News like this usually means double digit crashes in the share price

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This caught my eye today. Fireeye are splitting into two, Fireeye’s product division (and the company name) are being sold to Symphony Technology Group, a private business. The remaining consultancy business, Mandiant will continue being publicly traded.

This is an about turn, because Mandiant were originally a Fireeye acquisition in 2013.

I was burned by this stock several years ago, its stock price since IPO have been abysmal. Every week, there’s another news story about a big name data breach, so these guys should be rolling in money. But it turns out it’s cheaper just to pay the ransom than it is to invest in cybersecurity. They’d probably make more money by lobbying government to increase fines and breach disclosure legislation rather than through any product development.

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