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Chinese tech giant LeEco ditches acquisition of US TV maker Vizio

By Yang Yang | chinadaily.com.cn | Updated: 2017-04-11 14:49

Chinese tech giant LeEco ditches acquisition of US TV maker Vizio

Jia Yueting, co-founder and head of Le Holdings Co Ltd, also known as LeEco and formerly as LeTV, poses for a photo in front of a logo of his company in Beijing, April 22, 2016. [Photo/Agencies]

Chinese technology conglomerate LeEco has abandoned its $2 billion scheduled acquisition of US television maker Vizio Inc, and is instead exploring other ways to incorporate LeEco's content into Vizio's devices.

In a joint statement, released on Monday, the two companies announced the merger would not proceed but LeEco and Vizio still believed there was great synergy between the two companies.

The two companies said they were looking for ways to integrate LeEco's Le app and content into Vizio's CE platform and bring Vizio's products to the China market by engaging in a collaborative partnership.

In July, LeEco announced its acquisition of the California-based Vizio, which has 30 million users, for $2 billion. The deal was intended to create a foundation for branding and acquiring US customers.

The collapse of the deal is a sign that LeEco's global expansion plans are faltering. Jia Yueting, CEO of LeEco, said late last year that the company was struggling to raise cash after the rapid expansion of his media and internet empire.

Founded in Beijing by Jia in 2004 as a Netflix-style streaming video platform, LeEco's vision is to offer a suite of connected hardware and services.

LeEco subsequently moved into content production, smart technology and electric cars and expanded its market into the United States and India. LeEco bought Coolpad to boost subscription and smart phone sales in 2016. It also partnered with American telecom giant AT&T in a deal that included carrying the US company's DirecTV Now streaming service last year.

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