Chinese Tech Giant LeEco Abandons Vizio Bid

LeEco
Oh Snap! There goes the penthouse condo in Miami, the new Ferrari and the girlfriends/NFL type trainers for the folks at Vizio. Seems the Chinese company LeEco pulled the plug on a $2 billion deal to acquire Vizio. Hmmmmm, “Chinese policy”, cash flow issue OR United Airlines dragging a Chinese doctor off a plane torpedoed the deal? Pick one.

(Bill Taylor/CEO)

“Chinese tech conglomerate LeEco (300104.SZ), whose businesses stretch from smartphones to electric vehicles, has abandoned a $2 billion proposed acquisition of U.S. consumer electronics company Vizio (VZIO.O), the company said on Tuesday.

A LeEco representative reached by Reuters on Tuesday cited a “Chinese policy factor” for abandoning the proposal, but declined to provide further details.

The deal was first announced in July, with LeEco agreeing to acquire the Irvine-based manufacturer of LCD/LED flat panel TVs.

In recent months, LeEco has faced financial troubles due to the rapid pace of growth of its various businesses, with founder and chairman Jia Yueting acknowledging in a staff letter that the firm faced a “big company disease”…

Source: Reuters