Sometimes in the mercurial world of business acquisitions, things don't work out, and that's the case for Chinese firm LeEco and its proposed bid to buy US television giant Vizio for $2 billion.
The companies announced today they are calling off the deal, citing "regulatory headwinds." Chinese regulatory hurdles were rumored to be standing in the acquisition's way.
LeEco, a huge, multi-faceted tech company in China, has products in nearly every category, from phones to VR to smart bikes to cars as well as internet services. A Vizio deal would have allowed LeEco to continue its push into the US market, which it launched head first into last year.
But alongside LeEco's ambitions are reports it's struggling to stay afloat; the company is said to have a serious cash flow problem and reportedly delayed paying US employees late last month. Financial constraints apparently weren't cited as reasons for cancelling the Vizio acquisition, but LeEco's rumored struggles may have been a factor.
Still friends
LeEco and Vizio aren't washing their hands of each other, however.
Though Vizio will no longer be brought under the LeEco umbrella, the companies are leaving open the possibility of putting the Le app as well as content on Vizio products.
On the flip side, the new arrangement, described as "a win for both companies", will see Vizio devices go on sale in China thanks to LeEco's established in-roads there.
While it's not the ending either was probably hoping for, there are benefits to be had for both Vizio and LeEco. For its part, Vizio has a clearer path to sell its products in a huge market, while LeEco can build name recognition stateside if its app and content are built into name-brand devices.
Now, we'll just have to wait and see if the fruits of this new relationship bear fruit.
Via Engadget
- Here at the best TVs you can buy right now
from TechRadar - Television news http://ift.tt/2oYJG7m
via IFTTT
0 التعليقات: