LeEco deal to buy Vizio for $2 billion falls through
The Chinese mega-company had agreed to buy the US TV maker in July. The deal is called off amid reports of a cash squeeze.
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Jia Yueting, LeEco CEO, introduces new smartphone last year in Beijing. The company announced Monday that its deal to buy US TV maker Vizio won't go forward.
Chinese tech company LeEco won't go through with a deal announced in July to buy US TV manufacturer Vizio for $2 billion.
Citing "regulatory headwinds," the companies said in a joint statement that they'd still be looking for ways to partner with each other. "We continue to believe that there is great synergy between the two companies," the statement said.
LeEco has tried make a big splash with its debut in the US. It announced its deal to buy Vizio in July, and in October, the company debuted a smart TV, phone, and self-driving car, as well as services to run on and connect its devices.
But by November, reports surfaced the company was tightening its belt. What's more, at the end of November, Chinese regulators announced there would be heightened scrutiny of Chinese capital leaving the country for foreign investments.
Earlier in April, LeEco employees told Bloomberg the company was five days late paying its US employees and that the Vizio deal was stalled.
A LeEco spokeswoman declined to comment on "rumors or speculation" when asked about the report on payroll and tightening cash reserves at the company.