Chinese company LeEco has called off its acquisition of Vizio, a television manufacturer, due to what it refers to as “regulatory headwinds.”
The deal, tipped to be worth $2 billion USD, was announced last July and was seen as a way for LeEco to gain a foothold in the North American market. Months of dealing with Chinese regulator related roadblocks, as well as LeEco’s penchant for burning cash at a rapid clip, have seen the deal called off.
At least for the time being, Vizio is set to remain a private, U.S.-based business. Rather than an acquisition, however, Vizio and LeEco have announced a “partnership” focused on two things. LeEco’s Le app is set to be featured in a variety of Vizio products and some of the company’s televisions will make their way to China via LeEco.
“We continue to believe that there is great synergy between the two companies,” reads a statement from LeEco today.
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