Home Gadgets LeEco calls off $2 billion acquisition of TV maker Vizio

LeEco calls off $2 billion acquisition of TV maker Vizio

349
0
SHARE
image theverge.com

Chinese electronics company LeEco is no longer buying Vizio, a leading manufacturer of televisions. Today the companies jointly announced that “the merger agreement to acquire Vizio will not proceed due to regulatory headwinds.”

The $2 billion deal was first announced last July. But months of obstacles with China regulators combined with LeEco’s penchant for burning cash have resulted in the deal being called off entirely. For now, Vizio will remain a private, US-based business that many view as an American hardware success story.

Instead of pursuing an acquisition, LeEco and Vizio have instead announced a “partnership” that will result in two things: LeEco’s Le app will be included on some Vizio products, and Vizio products will launch in China. “We continue to believe that there is great synergy between the two companies,” today’s statement said.

Buying Vizio would’ve jumpstarted LeEco’s efforts to become a major tech player in the United States. Now, at least as it pertains to Vizio, it will have to settle for app software integration and continue trying to make inroads elsewhere.

source http://www.theverge.com/2017/4/10/15246058/leeco-vizio-acquisition-cancelled

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.