LeEco had announced last summer that it would acquire Vizio, the US's biggest manufacturer of televisions, for $2 billion.
LeEco's finances have come under scrutiny, even as it has planned an ambitious USA expansion. Given all the problems the company has had, we've got to wonder if "regulatory headwinds" were really the problem with the Vizio acquisition or, if like what's happened before, LeEco realized it just couldn't afford to buy Vizio. They are planning to continue to work together as separate companies.
LeEco (known as Letv until January 2016) was China's first publicly traded streaming video company - and has aggressively made deals to expand into other businesses including content, consumer electronics, and auto production.
LeEco Global Group Ltd. and VIZIO Inc. announced today that the merger agreement to acquire VIZIO will not proceed due to regulatory headwinds.
LeEco and Vizio will "explore opportunities" to build out the Le app and its contents into the connected CE platform distributed by Vizio. "We continue to believe that there is great synergy between the two companies". Earlier this month, LeEco delayed paychecks for its USA operation, which has suffered from key executive departures. But in March, Reuters reported that LeEco is looking to sell the property again.
The mentioned partnership may also help LeEco further pierce into the American market, an endeavor they have been pursuing for some time. This property was originally planned to be an "EcoCity that houses 12,000 employees", but money issues prevented the company from following through on its plans. The acquisition of Vizio, a major TV manufacturer based in southern California, was created to help its drive into the US ahead of a hoped-for USA stock listing in 2019.