Cash-strapped Chinese tech firm LeEco on Monday abandoned its effort to buy US television maker Vizio, citing “regulatory headwinds.”
Tech giant LeEco led by billionaire Jia Yueting last year announced a deal to buy Vizio for US$2 billion, but the acquisition had to be approved by regulators.
“The merger agreement to acquire Vizio will not proceed due to regulatory headwinds,” LeEco Global Group Ltd. and Vizio said in a joint release.
“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.”
LeEco and Vizio will look into ways to incorporate the Chinese company’s app and content into Vizio’s offerings and work together to bring Vizio products to the China market, according to the new agreement.
