Chinese electronics company LeEco is not any further buying Vizio, a leading manufacturer of televisions. Last July, the $ 2 billion deal was announced. But months of obstacles with China regulators along with the penchant for burning cash of LeEco have caused the deal being called away. For the time being, Vizio will continue being a private business that many views as a hardware success story.
Instead of pursuing an acquisition, LeEco and Vizio have alternatively announced a “partnership” which is going to end in two matters: LeEco’s Le app is going to be included on some Vizio products, and Vizio products will establish in China. “We continue to feel there is great synergy between the two businesses,” the current statement said.
Purchasing Vizio would’ve jumpstarted the efforts to be tech player in the USA of LeEco. Now, at least when it comes to Vizio, it’s going to need to stay for app software integration and keep trying to create inroads elsewhere.
Troubled technology firm LeEco is in water.
Following its bid collapsed in April, Vizio filed a federal lawsuit against LeEco on Tuesday, Variety reported.
In April, the companies declared “regulatory headwinds” for scrapping the agreement, however, Vizio said in the lawsuit that LeEco had already “begun to collapse because of their severe cash flow and financial issues.”
Vizio is currently seeking tens of thousands of thousands of thousands of dollars in damages, plus an outstanding portion of its merger termination fee.
“We don’t have anything to share at the moment,” a LeEco spokesman said Wednesday when asked about the lawsuit.
China-based LeEco strove to make a major splash. It announced its price to buy Vizio past July, and in October, the business debuted a television mobile phone, and motor vehicle, as well as services to operate on and connect its own devices.
But by November, reports surfaced its belt was tightening. In the close of November, authorities announced there would be heightened scrutiny of capital leaving the country for investments. From May, LeEco chose to cut at 70 per cent of its US workforce.