Vizio will not be acquired by Chinese company LeEco after all. The $2 billion dollar deal has fallen through due to “regulatory headwinds”, the companies have announced.
Vizio will remain American
Vizio will remain a private, US-owned business selling TVs, soundbars, and other consumer electronic products. This much is clear after China’s LeEco has backed out of the planned $2 billion acquisition of the company for that was announced in July 2016.
In a joint statement the two companies cite “regulatory headwinds” but in recent months LeEco’s financial strength has been called into doubt by US media. Reuters reported in January that LeEco has raised $2.2 billion dollars in funding.
The joint statement is included below.
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.
Vizio will continue to operate as usual and is currently in the process of launching the 2017 E series and the 2017 D series. We hope to hear more about the new M, P and possibly R series soon.
