LeEco Backs Out of $2 Billion Vizio Acquisition

LeEco Backs Out of $2 Billion Vizio Acquisition

LeEco Backs Out of $2 Billion Vizio Acquisition

By many measures, the quickly growing company appeared poised to becomes a global consumer electronics powerhouse.

LeEco had officially announced plans to acquire Vizio for $2 billion in cash last July as a way to kickstart its expansion into North America.

LeEco and TV manufacturer Vizio said Monday that they had called off their $2 billion merger, citing "regulatory headwinds". The statement said the companies would continue to work on ways to incorporate LeEco's app and content within Vizio's smart TV system. Faraday Future, a USA -based electric vehicle start-up that counts LeEco as its primary investor, has had numerous problems paying its bills, retaining staffers, and generally proving that it isn't bullshit. A LeEco spokesperson also told Variety that calling off the acquisition won't have any impact on LeEco's other USA businesses. That could mean a lot of different things - but the result is the same: VIZIO and LeEco will remain separate companies and brands. But the acquisition was squashed after both companies endured too many obstacles from Chinese regulators.

The mentioned partnership may also help LeEco further pierce into the American market, an endeavor they have been pursuing for some time. For Vizio, the company will have to figure out what "life after LeEco" looks like. But in March, Reuters reported that LeEco is looking to sell the property again. The company, which is best known in China for its online streaming service with 730 million monthly users, wanted to expand its ambitions from beyond video to include phones, electric cars, TVs, and other gadgets. Apparently, the two companies will explore content opportunities with LeEco handling digital goods that could see distribution through Vizio's various channels.

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