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LeEco faces more problems as its $2 billion acquisition of Vizio gets stalled
LeEco’s acquisition of TV manufacturer Vizio has hit another stumbling block. The deal was set to be finalized recently but new reports from LeEco’s home nation suggest it has been stalled.
According to the China Money Network — whose logo looks like a Poké Ball — domestic restrictions in China regarding the “movement of capital” have caused the move to be delayed.
LeEco announced the Vizio TV deal last summer, after two years of negotiations, but a string of problems have followed it. It was rumored that cash problems at LeEco could affect the deal in November, before a wait for the Chinese government’s approval halted proceedings in December. Vizio was then fined $2.2 million for illegal data collection in February which cast doubt over the purchase. All of this occurred alongside other reports of problems at LeEco (really, the above has only scratched the surface).
In a comment to Tech Crunch, a LeEco spokesperson said that the “deal is still pending regulatory approval,” but there’s no indication of when it will pick up again. Variety states that “the deal may have to be abandoned or cancelled.” We’ll keep you updated as we learn more.
Though it is worrisome for the Chinese manufacturer, this isn’t exactly a huge scandal like Samsung’s boss being arrested and, at this point, LeEco is probably used to adversity; when things start running smoothly for the company it’s going to be newsworthy in itself.