The Symantec-Huawei Technologies joint venture reportedly broke down because the US IT security giant feared its affiliation with the Chinese telecommunications equipment maker would prevent it from obtaining classified information from the US government about cyber-threats.
Quoting sources familiar with the matter, The New York Times reported on Monday that Symantec's decision came as a pre-planned political move to coincide with the US government's efforts to share more classified cyber-threat information with the private sector. The sources, who declined to be named because they were not authorised to speak, added that Symantec was "worried" its ties to Huawei would put the IT security vendor at a disadvantage with the US government.
The joint venture, called Huawei Symantec Technologies, was formed in 2007 to develop and distribute security and storage appliances to telecommunications carriers and enterprises worldwide. In November last year, both companies announced Symantec would sell its 49-percent stake in this company to Huawei for $530m (£331m). Symantec chief executive and president Enrique Salem said in the statement: "Symantec achieved the objectives we set four years ago and exit the joint venture with a good returns on our investment, increased penetration into China, and a growing appliance business."
For more on this ZDNet UK-selected story, see Symantec ended Huawei alliance: report on ZDNet Asia.
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