The companies announced today they are calling off the deal, citing "regulatory headwinds". The companies plan to continue working together, though.
LeEco is frequently called "The Netflix of China" due to its popular "LeTV" video service. The company is known for its low retail prices on televisions and has entered other areas of consumer electronics such as computers, smartphones and tablets.
Then, in February, Vizio agreed to pay $2.2 million in a settlement with the FTC which charged that the company failed to make clear to customers that it was collecting and selling second-by-second information about the shows they watched. For Vizio, the company will have to figure out what "life after LeEco" looks like.
LeEco hasn't had an easy time lately and things don't seem to be perking up.
Through LeEco's public relations team, the companies said executives would not be available to answer questions about the announcement. Both LeEco and Vizio have announced that the merger agreement for the former to acquire the latter will not proceed. LeEco originally meant to build office space for 12,000 employees on a 49-acre property it acquired from Yahoo in 2016. Less than a year later, Reuters reported that LeEco would be forced to sell the land, saying the company was "cash-strapped and struggling to repay a pile of debts to suppliers and business partners".
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At the end of the day, LeEco has a major cash problem.
In 2016, LeEco even poached Google's lead legal counsel, Joshua McGuire, giving him the title of "Vice President and General Counsel".
There has been some good news for LeEco, though.
However, in March, the company successfully secured $2.2 billion for expansion from investors including property developer Sunac China Holdings Ltd, whose investments went into LeEco's smart internet TV subsidiary Leshi Zhixin, as well as its film production subsidiary, Le Vision Pictures.
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