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Chinese tech company LeEco snags Vizio for $2 billion
We heard some rumors that LeEco was rolling around the idea of buying Vizio, but until this morning we had no official proof of their intent. Now the jig is up and the news is out: at an LA press conference, LeEco revealed that the hardware and software components of Vizio will become a wholly owned subsidiary of LeEco. The price tag on this acquisition is a cool $2 billion.
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It’s worth noting that Vizio’s data business, Inscape will become it’s own separate company and will maintain private ownership under Vizio CEO William Wang. LeEco will own 49 percent of Inscape. The majority of Vizio’s executive corporate structure will remain intact.
LeEco’s purchase of Vizio is a pretty big deal for the Chinese electronics firm. The company has recently been making a strong push into state-side business, and this acquisition may give them the powerful positioning they need in the US television market.
LeEco may not yet be a household name in the US, but the company has been engaging the global consumer electronics market by producing everything from smartphones to autonomous electric cars. It is sometimes called the “Netflix of China,” but their ambitions extend well beyond streaming on demand.
This is the right decision to make for our hardworking employees and loyal shareholders.
At the press conference, William Wang touted Vizio as a realization of the American dream, describing its origins and growth in loving detail. He expressed mixed feelings about selling the company to LeEco, saying “As the owner and father of Vizio, I am very reluctant to let it go. But as the CEO and owner of the company, I know this is the right decision to make for our hardworking employees and loyal shareholders.”
Will LeEco be successful in engaging the US market? The company is certainly using some aggressive positioning and marketing tactics, and CEO Jia Yueting is developing a polarizing reputation after accusing Apple of being outdated and comparing Apple to Hitler. Let us know what you think is in store for LeEco’s growth in the US in the comments below!