Chinese Giant LeEco Ends Plan to Acquire U.S. TV Maker Vizio
- Companies cite ‘regulatory headwinds’ as reason deal stopped
- LeEco had announced acquisition for $2 billion in July
Vizio flat screen televisions sit on display inside a CostCo store in Queens, New York, U.S., on Thursday, May 28, 2009. Costco Wholesale Corp., the largest U.S. warehouse-club chain, said third-quarter profit fell 29 percent after consumers cut spending, the company incurred a charge for litigation and a higher dollar hurt overseas sales.
Photographer: Daniel Acker/BloombergChinese technology conglomerate LeEco Inc. abandoned its planned $2 billion acquisition of U.S television maker Vizio Inc. because of regulatory issues, and instead is exploring other ways to incorporate LeEco’s content into Vizio’s devices.
“The merger agreement to acquire Vizio will not proceed due to regulatory headwinds,” the companies said Monday in an emailed statement. “We continue to believe that there is great synergy between the two companies.”