LeEco acquisition of Vizio canceled

Trevor Jackson
April 11, 2017

The companies say they will "continue to explore opportunities" to collaborate, but this particular professional marriage is off. The company is known for its low retail prices on televisions and has entered other areas of consumer electronics such as computers, smartphones and tablets.

And Jia, who had said he wanted to take on Silicon Valley giants like Apple, Tesla and Netflix, warned LeEco employees in November that "financial management and organization inefficiencies are starting to hold us back". That said, it's also true that LeEco as a company is in the midst of a cash crunch. Previously Vizio was planning an IPO, but that was derailed by the LeEco purchase. In October, the Chinese company held a splashy United States launch event where it announced two Android-powered smartphones, a line of 4K smart TVs, a set-top box, an online video store, VR goggles, a "smart bike", and a self-driving concept vehicle.

In a statement, Vizio told us: "Both LeEco and Vizio will continue to operate as separate, independently owned and operated entities, with Vizio's operations continuing under the same management team headquartered in Irvine, California".

LeEco hasn't had an easy time lately and things don't seem to be perking up. LeEco originally meant to build office space for 12,000 employees on a 49-acre property it acquired from Yahoo in 2016.

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But he'd rebound nicely, making five birdies on a day when the winds swirled and the greens began to dry out. But, his second shot did not go far enough, rolled off the green, and rolled right into the water hazard.


A LeEco spokeswoman declined to comment on "rumors or speculation" when asked about the report on payroll and tightening cash reserves at the company. Last month, word broke that it was looking to sell the expensive land it bought in Silicon Valley just previous year because of financial problems.

There has been some good news for LeEco, though. Since the initial announcement, the deal has run into trouble with Chinese regulators and now the companies announced that "regulatory headwinds" have caused them to cancel the deal.

Early this year, LeEco secured a US$2.2 billion investment from a group led by property developer Sunac China Holdings, after it had to suspend trading in shares.

Other reports by TheDailyFarc

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