The LeEco/Vizio merger is cancelled.
The $2 billion deal, announced last year, would have seen Chinese electronics firm LeEco purchase Vizio, creator of cheap, data-mining smart TVs. In a joint statement today, the two companies said that “the merger agreement to acquire VIZIO will not proceed due to regulatory headwinds.” The companies say they will “continue to explore opportunities” to collaborate, but this particular professional marriage is off.
LeEco is frequently called “The Netflix of China” due to its popular “LeTV” video service.
The cash from LeTV funds the rest of the company, which it has used to aggressively expand into consumer electronics, movie production, car manufacturing, and other areas.
The company’s purchase of Vizio was a little odd to begin with. LeEco already has its own line of smart TVs and already sells them in the US, so it was never clear what purchasing Vizio have accomplished.
For Vizio, the company will have to figure out what “life after LeEco” looks like. Previously Vizio was planning an IPO, but that was derailed by the LeEco purchase.
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