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  • Friday, April 19, 2024

Symantec Walks Away from China JV, Takes $530M

Symantec (NASDAQ: SYMC) has agreed to sell its 49 percent stake in a joint venture with Chinese telecommunications firm Huawei for $530 million.

Under the deal, Huawei, which currently holds 51 percent of the share, will attain 100 percent control of the Hong Kong-based company, “Huawei Symantec, ” a joint venture between Huawei and Symantec that was formed in 2008.

Reuters reported that each company initially fronted $150 million to start the venture, which leaves Symantec with a hefty return.

According to Symantec’s 2011 annual report, the venture has lost money since its start, posting a $120 million loss for its share of the venture from February 2008 to December 2010.

Huawei currently serves as the world’s second largest telecommunications infrastructure equipment manufacturer. According to its website, Huawei Symantec currently owns more than 900 patents.

In a joint statement, the companies said they expect to finalize the deal by the first quarter of 2012.

For more of our in-depth coverage on this transaction, visit our sister site The New New Internet here.

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