Digital River Flushed by Symantec (DRIV, SYMC)

Posted in pre-market 
October 12th, 2009

Digital River, Inc. (NASDAQ: DRIV) is getting crushed this morning after shares were halted pending news (resume time was 7:30) .  The company was informed by Symantec Corporation (NASDAQ: SYMC) that Symantec will not extend its existing e-commerce agreement for a variety of e-commerce-related services.  The pact expires on June 30, 2010, and Symantec expects to move all of the online traffic currently outsourced to Digital River to an internally developed Symantec e-commerce system before the current contract expires. The exact timing and migration has not been stated.The 52-week trading range is $16.88 to $41.20 and the average daily volume is about 550,000 shares.  Today will be an exponential trading volume day for DRIV shares.

UPDATE at 8:15 AM EST:  We have seen 285,000 shares trade hands and the stock is trading at $28.85.

As of 7:45 AM EST we have seen about 45,000 shares of Digital River stock trade hands.  Unfortunately, the price is down around $30.00 after a $40.42 closing bell price on Friday.

-JON C. OGG

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