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LeEco acquisition of Vizio canceled
LeEco and Vizio were in acquisition talks for a couple years before finally announcing a deal last July. LeEco was to acquire 49% of Vizio for $2 billion, a deal quickly slowed down by Chinese domestic restrictions regarding the “movement of capital”.
Today both companies have finally announced the deal has been canceled and won’t be going through in the foreseeable future, but both parties will continue to work together and strengthen their relationship.
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.
Chinese regulations have been an ongoing barrier between these companies, and Variety’s sources even say Vizio lost confidence in the deal “months ago”.
Source close to Vizio told me that the co’s senior execs had lost confidence in the deal going through months ago https://t.co/VL5JfcZS2c— Janko Roettgers (@jank0) April 10, 2017
The mentioned partnership may also help LeEco further pierce into the American market, an endeavor they have been pursuing for some time. Even if an acquisition is not to go through, a partnership could still bring plenty of benefits to both.
We have reached out to LeEco for further comment regarding the abandonment of this acquisition, so keep it tuned to learn more.