The global technology company LeEco that was made famous by their cutting edge smartphones and smart televisions throws the $2 billion acquisition deal with Vizio out the door. The China-based tech company drops the possible deal this coming July because of the country’s tightening regulatory laws.
The Chinese tech company LeEco along with Vizio said in a joint statement that “We continue to believe that there is great synergy between two companies.” LeEco thrashes the possible merging because of regulatory reasons, and according to market analysts, the company is currently faced with possible cash problems.
The Vizio deal would help LeEco to penetrate a bigger market, branching out of its native community. They will also be a potential candidate to become a major tech player in the United States. But the billion-dollar deal will have to wait for both companies.
Vizio’s Possible Future with LeEco
The UHD TV maker Vizion will continue to run as a US-based maker, according to the statement both companies released, a partnership will still continue even without the acquisition pulling through. The companies will be looking forward to doing two things in the future; the LeEco app that will be available on Vizio products and the advent of Vizio products being present and sold in China.
The smart TV maker is now gearing to release its new 2017 line up for their D-series TVs. The collaboration with LeEco will explore a lot from Vizio’s CE platform as well as their EUI platform.
LeEco Cuts Workforce
China’s tech conglomerate LeEco eyes to axe as much as third of its current US workforce. The company which stems at China from being a dominant smartphone to electric car company looks to lessen its “growing workforce” in the states as 2016 sales forecasts in the US is missed by a bigger margin.
The company’s CEO Jia Yueting struggles to keep a firmer grasp on the global market he constantly traverses in, the company garnered US revenue of less than $15 million last year after its debut last October in comparison to an expected $100 million set by an analyst.
Currently, the tech company is sitting atop an estimated $2.4 billion strategic investment starting this year, this includes Sunac China Holdings into its online video, smart TV, and movie production affiliates.
Possible LeEco Future
LeEco has been making quite a splash in the US while having a huge presence in their home market. The dropping sale of Apple products in China pushes a lot of room for LeEco to play in the smartphone market, while the continuous innovation it puts on the table brings them a good head start in the market they are trying to enter.
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