Nikesh Arora CEO & Chairman Palo Alto Networks, speaking on CNBC’s Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024.
Adam Galici | CNBC
Palo Alto Networks is buying cloud security software assets from IBM as part of a broader partnership that will give the cybersecurity company access to more consultants and a bigger customer base.
In a joint press release on Tuesday, the companies said Palo Alto is acquiring IBM’s QRadar cloud software for an undisclosed sum and migrating existing customers to its security platform, Cortex Xsiam. IBM will train over 1,000 of its consulting employees on Palo Alto’s products.
Consolidation has been ramping up in the security software industry as companies gear up for a swarm of attacks spawned by artificial intelligence. In March, Cisco closed its $28 billion acquisition of Splunk, the networking company’s largest deal ever, snapping up the leading provider of security information and event management (SIEM) software.
Earlier on Wednesday, two other companies in the SIEM market, Exabeam and Thoma Bravo’s LogRhythm, announced plans to merge.
Nikesh Arora, Palo Alto’s CEO, told CNBC that his company needs to be better prepared to go up against Splunk.
“Clearly, it’s just a hotbed of activity in the consolidation in cybersecurity,” Arora said.
Palo Alto and IBM have been working more closely together for months, and Arora said he’d been talking with IBM CEO Arvind Krishna about how to advance their partnership. But they both sold SIEM software.
“We used to get stuck there,” Arora said.
In December, IBM said its consulting group would offer Palo Alto’s competing Cortex Xsiam software to customers. IBM will now adopt Cortex Xsiam, as well as Palo Alto’s Prisma Sase 3.0 product bundle. Palo Alto will incorporate IBM’s Watsonx large language models into Cortex Xsiam, in addition to its use of models from Google.
The SIEM category has been around for over 20 years, but Palo Alto just introduced Cortex Xsiam two years ago. It’s rapidly gained adoption, with over $90 million in bookings in the latest quarter, and Arora said the company has been taking market share from “everyone.”
For IBM, a more robust lineup of contemporary security tools for consulting might help the company deliver on its stated goal of revenue growth in the mid-single digits for 2024. In the first quarter, revenue increased 3%, with a 2% bump in the consulting segment.
Palo Alto is growing much faster than IBM. In the January quarter, revenue jumped 19%. The company will report results for the latest quarter on Monday.
Palo Alto more than doubled in value last year and its stock is up 6% in 2024, lifting the company’s market cap past $100 billion. The stock rose more than 1% in extended trading. IBM is up close to 5% this year and is now valued at $154 billion.
The companies said the transaction should close by the end of September, subject to regulatory approval and other conditions.
The Federal Trade Commission asked a judge in Seattle to delay the start of its trial accusing Amazon of duping consumers into signing up for its Prime program, citing resource constraints.
Attorneys for the FTC made the request during a status hearing on Wednesday before Judge John Chun in the U.S. District Court for the Western District of Washington. Chun had set a Sept. 22 start date for the trial.
Jonathan Cohen, an attorney for the FTC, asked Chun for a two-month continuance on the case due to staffing and budgetary shortfalls.
The FTC’s request comes amid a push by the Trump administration’s Department of Government Efficiency to reduce spending. DOGE, which is led by tech baron Elon Musk, has slashed the federal government’s workforce by more than 62,000 workers in February alone.
“We have lost employees in the agency, in our division and on our case team,” Cohen said.
Chun asked Cohen how the FTC’s situation “will be different in two months” if the agency is “in crisis now, as far as resources.” Cohen responded by saying that he “cannot guarantee if things won’t be even worse.” He pointed to the possibility that the FTC may have to move to another office “unexpectedly,” which could hamper its ability to prepare for the trial.
“But there’s a lot of reason to believe … we may have been through the brunt of it, at least for a little while,” Cohen said.
John Hueston, an attorney for Amazon, disputed Cohen’s request to push back the trial date.
“There has been no showing on this call that the government does not have the resources to proceed to trial with the trial date as presently set,” Hueston said. “What I heard is that they’ve got the whole trial team still intact. Maybe there’s going to be an office move. And by the way, both in government and private sector, I’ve never heard of an office move being more than a few days disruptive.”
The FTC sued Amazon in June 2023, alleging that the online retailer was deceiving millions of customers into signing up for its Prime program and sabotaging their attempts to cancel it. Amazon has denied any wrongdoing, calling the FTC’s claims “wrong on the facts and the law.”
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” former FTC Chair Lina Khan said at the time.
The FTC brought a separate case against Amazon in September 2023 accusing it of wielding an illegal monopoly. The agency alleged that Amazon prevents sellers from offering cheaper prices elsewhere through its anti-discounting measures. That case is set to go to trial in October 2026.
In the time since the FTC filed its cases, Khan has been replaced as the head of the FTC by Trump appointee Andrew Ferguson. Tech companies, which are the target of several regulatory agencies, have sought to curry favor with Trump, including Amazon founder and executive chairman Jeff Bezos. He attended President Donald Trump’s inauguration in January, and Amazon was among several tech companies to donate $1 million to Trump’s inauguration committee.
Tesla CEO Elon Musk looks on as U.S. President Donald Trump speaks to the press as they stand next to a Tesla vehicle on the South Portico of the White House in Washington, D.C., on March 11, 2025.
Mandel Ngan | AFP | Getty Images
Tesla shares rose for a second straight day in early trading Wednesday after the stock recorded its worst day since 2020 earlier in the week.
Shares were last up 8%, building on a 3.8% gain from Tuesday.
Tesla has tumbled in recent weeks, shedding more than 40% in market value since President Donald Trump took office. Shares rallied in the postelection Trump trade on bets that CEO Elon Musk’s close ties to the president would benefit the company.
Tariff concerns have added fuel to that fire as a potential trade war threatens two key supplier markets. That pushed the company to its longest weekly losing streak in its 15-year public market history.
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Since Trump’s inauguration, Musk has become a key face of the new White House administration and close advisor of the president as he looks to reduce government spending, leading the so-called Department of Government Efficiency.
Trump said Tuesday he plans to buy a Tesla in support of Musk as Tesla locations around the country see protests and demonstrations.
The company also faces a divided Wall Street, as bears point to rising EV competition, declining new vehicle deliveries and the effects of tariffs on the company’s near-term business. Bulls still have faith in Musk and his promise to unveil an affordable new model EV and start a driverless ride-hailing service later this year.
In this photo illustration, the Spotify music app is seen on a phone on June 04, 2024 in New York City.
Michael M. Santiago | Getty Images
Spotify is minting music millionaires.
Nearly 1,500 artists generated over $1 million in royalties from Spotify in 2024, the company said Wednesday in its annual Loud and Clear Report.
Spotify said more than 80% of the artists in that pool didn’t have a song reach the app’s Global Daily Top 50 chart.
“Spotify has helped level the playing field for artists at every stage of their careers,” read a portion of the report. “Success in the streaming era doesn’t require a decade-spanning catalog nor a chart-topping hit.”
The news comes about a month after the company reported a fourth-quarter earnings beat that saw the Swedish music streamer record its first full year of profitability. The company said it paid an all-time high of $10 billion in royalties to the music industry for the year.