Audio Video News

LeEco, the China-based online video and internet TV content provider, has abandoned plans to acquire Vizio in a $2 billion deal announced last summer.

In a joint statement, LeEco and Vizio said that the deal had been terminated due to “regulatory headwinds” and announced a partnership under which LeEco’s Le app will be included on some Vizio products, and Vizio products will be sold in China. “We continue to believe that there is great synergy between the two companies,” the statement said.

LeEco, which owns stakes in a varied mix of tech companies, had faced financial troubles recently, but investors stepped in to provide $2.2 billion in capital for expansion. It’s not clear to what extent those problems are related to calling off the deal but some industry observers speculated that LeEco may have gotten cold feet.

We'll have to wait and see what benefits the app and the partnership bring.