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China's LeEco to buy US TV maker Vizio for $2 billion

(chinadaily.com.cn) Updated: 2016-07-27 10:37

China's LeEco to buy US TV maker Vizio for $2 billion

Jia Yueting (Left), chairman and founder of LeEco, shakes hands with William Wang, chairman, founder and Chief Executive Officer of Vizio, at a press conference where it was announced that LeEco had acquired VIZIO for $2 billion in Hollywood, California, July 26, 2016. [Photo/ Agencies]

Chinese internet company LeEco Holdings Ltd announced on Tuesday it has entered into a definitive agreement to buy Vizio Inc, a leading consumer electronics company in North America, for $2 billion.

Founded in 2002 and based in Irvine, California, Vizio has the biggest unit shares in Smart TVs and Sound Bars in North America.

All of the Vizio hardware and software operations, technology and intellectual property will be acquired by LeEco as a wholly owned subsidiary, while Vizio’s data business Inscape will spin off and operate as a separate, privately owned company.

"Acquiring Vizio is an important step in our globalization strategy and building our North American presence," said Jia Yueting, chairman and founder of LeEco.

"From its inception, Vizio introduced a disruptive business model that changed the industry and aligns with our vision of breaking boundaries to deliver consumer-focused products, software and services," he said.

William Wang, chairman, founder and Chief Executive Officer of Vizio, said he is excited to see how LeEco's global reach and resources will elevate Vizio as the company continues to bring great technology, innovation and value to its consumers.

Subject to customary closing conditions, the transaction is expected to close during the fourth quarter this year.

 

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