LeEco shelves plans to acquire Vizio because of ‘regulatory headwinds’

By : |April 11, 2017 0

Chinese electronics giant LeEco has abandoned its plans to acquire US-based TV maker Vizio as announced, the company said today. The $2 billion deal that has been hitting roadblocks according to recent reports, has now officially ended as a result of “regulatory headwinds,” according to LeEco.

But the duo still “believe that there is great synergy between the two companies,” and apparently, there is a new agreement in place that will see the two “explore” continued partnership around content, leveraging LeEco’s network of available content via Vizio’s connected app ecosystem and distribution platform.

The deal was first announced in July, with LeEco agreeing to acquire the Irvine-based manufacturer of LCD/LED flat panel TVs. The collapse of the deal is another sign that LeEco’s global expansion plans are faltering. Jia said late last year the company was struggling to raise cash after the rapid expansion of his media and internet empire. Also, Chinese agencies have heightened scrutiny of outbound purchases over the past several months, an effort that coincides with a stronger government hand to limit capital outflows.

The continued relationship between LeEco and Vizio will include bringing Vizio hardware to the Chinese market, LeEco says, but it’s not yet talking about specifics regarding its path to making that happen.

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