Chinese tech firm LeEco stated it is abandoning its earlier decision of acquiring the US-based consumer electronics company Vizio owing to some domestic policy regulations. LeEco, however, refused to divulge any further details, like the precise clauses in their government policies that made them to overturn their decision.
The Chinese conglomerate had announced back in July 2016 of its move to acquire the Irvine, US-based Vizio. Worth mentioning, Vizio that specializes in the manufacture of flat-panel smart TVs had some time back been embroiled in a controversy after it was caught spying on its customers. LeEco, however, had then stated the spying issue will have no effect on their planned acquisition of Vizio.
LeEco, whose business interest stretches from smartphones to electric vehicles too had been grappling with financial issues, which again had much to do with its rapidly growing business. The company had also been the main source of funding for the American start-up Faraday Future that has been aiming to launch a futuristic electric vehicle to take on Tesla.
As per the terms of the deal, LeEco would have access to the same technology that powers Faraday Future vehicles to run its own ambitious electric vehicle project. LeEco is also into developing its own electric vehicle that would be able to drive on its own.
The Chinese firm meanwhile reported it has been successful in securing funding to the tune of $2.2 billion from investors, which includes property developer Sunac China Holdings. Much of the said amount again went into its smart TV business – Leshi Zhixin along with Le Vision Picture, the company’s film production business. The company had even been forced to sell off its Silicon Valley property earlier this year in view of the cash crunch it has been facing.
Coming back to its planned investment in Vizio, LeEco stated they have signed a new agreement with the American company as per which Vizio’s range of smart TVs will have access to the huge Chinese market.