On Tuesday, Chinese Tech Company LeEco announced that it cancelled the $2 billion acquisition deal with Vizio due to “regulatory headwinds”.
LeEco is one of the China’s most ambitious companies. It grew from a video site to a business empire ranging from consumer electronics to cars within 13 years. The deal was announced in July, when LeEco agreed to buy Irvine-based Vizio, which is the manufacturer of LCD/LED flat panel TVs.
After the cancellation of the deal between LeEco and Vizio, LeEco announced that a new agreement is made between the two companies. They will incorporate LeEco’s app and content within Vizio’s platform, and also help Vizio to bring its products to China market.
In recent month, LeEco has faced with financial troubles. And last month, the company was trying to sell 49-acre Silicon Valley property for about $260 million, which was the property LeEco bought less than a year ago.
“At some stage, when they're more cash ready they can think again about acquiring... In the meantime, they can get this partnership going,” said Neil Shah, a research director at Counterpoint Research.