Chinese conglomerate LeEco just spent $2 billion to get its foot in the door of the US television market.
Along with Samsung, Vizio has been one of the two most-popular TV brands in the US over the last few years. Vizio TVs are among CNET's most-recommended models.
The news, rumored for the last couple of weeks, came from Vizio founder and CEO William Wang on stage at a joint press event in Hollywood. Vizio's hardware and software businesses will be owned and operated as a wholly owned subsidiary of LeEco, while the Vizio's data business, Inscape, will be spun off.
"Fourteen years ago, I mortgaged my house to start Vizio, and since then, it has grown into one of the most well-known and respected CE brands in North America. As an entrepreneur, I couldn't be more proud of what has been accomplished," said Wang.
The remainder of the event served to introduce LeEco to the US and world press in attendance. The company has numerous products, including TVs, virtual reality gear, smartphones and even a concept electric vehicle.
Vizio's executive management team will remain in place, and it will continue operations an an independent subsidiary in Irvine, California. Vizio products will continue to be sold as normal, and customer service will remain based in the US.
The transaction is expected to close in the fourth quarter of the year.