LeEco may be a brand name that you’re not particularly familiar with, especially if you’re in the U.S. because they aren’t a household name here. Vizio, on the other hand, is a company that you’ve probably heard of. The two companies have been talking about a merger, but today, they have called off the acquisition that has been in talks for two years.
LeEco was going to acquire 49% of Vizio for $2 billion, only to be slowed down by Chinese domestic restrictions being a “movement of capital” or as LeEco puts it “due to regulatory headwinds.” Even though the acquisition has been canceled, nor will there be any further options of trying to merge, the two will continue to work together in the future. This could still help LeEco gain recognition in the U.S. or vice versa in other parts of the world for Vizio. LeEco sent out this statement to the media:
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.
What are your thoughts about LeEco and Vizio working together after cancelling this acquisition? Do you foresee LeEco gaining any market share in the U.S. even with the help of Vizio? Let us know by leaving your comments down below or on Google+, Twitter, or Facebook.
[button link=”http://www.androidauthority.com/leeco-acquisition-vizio-canceled-763019/” icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: Android Authority[/button]
