LeEco hits another snag in building its global empire, won't acquire Vizio
This time, regulations have stopped it from acquiring the US’s biggest TV maker.
Both companies sent out a tandem email with the following statement:
LeEco Global Group Ltd. and VIZIO Inc. announced today that the merger agreement to acquire VIZIO will not proceed due to regulatory headwinds. We continue to believe that there is great synergy between the two companies and are pleased to announce that LeEco and VIZIO have reached an agreement that is a win for both companies.
Under the new agreement, LeEco and VIZIO will continue to explore opportunities to incorporate the Le app and content within the VIZIO connected CE platform and engage in a collaborative partnership to leverage LeEco’s EUI (Ecosystem User Interface) platform, along with the brand’s exclusive content and distribution channels, to bring VIZIO products to the China market.
LeEco had announced last summer that it would acquire Vizio, the US’s biggest manufacturer of televisions, for $2 billion. It would have given the Chinese company a relative entry point into the American gadget market, not to mention helping to proliferate LeEco’s ecosystem of devices. But the acquisition was squashed after both companies endured too many obstacles from Chinese regulators.
For now, Vizio will remain a US-based business, though you’ll likely see some LeEco services pop up on future Vizio products.