Chinese electronics manufacturer LeEco has officially given up on its acquisition of US television maker Vizio. The deal, valued at $2 billion, was apparently cut off due to “regulatory headwinds”.
The two companies have come to a new agreement for LeEco to incorporate its Le app, some aspects of its EUI and exclusive content and programming into Vizio’s CE content platform on its TVs which will begin to ship in China.
LeEco is said to be mishandling its financial responsibilities in the midst of an aggressive spending campaign to set up and expand its operations in the United States. It has faced setbacks such as a construction stoppage for its Faraday Future smart car factory in Nevada and the supposed sale of its company headquarters in California.
The company recently took in a $2.2 billion cash infusion from Chinese property developer Sunac.[toggles behavior=”toggle”] [toggle title=”Joint statement”]
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.[/toggle][/toggles]