Chinese electronics firm LeEco is buying American TV manufacturer Vizio for $2 billion. The acquisition was announced during a press event this morning in Los Angeles, giving LeEco an instant foothold in the US television market. Under the deal, Vizio will be operated as an independent subsidiary, with the company's current executive team staying in place and working out of its offices in Southern California sans Vizio founder and CEO William Wang, who is leaving the company. No replacement has been named, but Wang will be taking the reins as chairman and CEO of Inscape, Vizio's data business, which is being spun out into a privately held company. LeEco will own 49 percent of Inscape, with Wang owning the remaining 51 percent. The LeEco deal is expected to close in the fourth quarter of this year.
In what seemed to be more of a eulogy than a press conference, Wang described the company's humble beginnings, and how it had fought through early challenges, parts shortages, and the global financial crisis as it slowly slugged its way to success. "We had to fight through competition from all over the world," he said, before lauding most of Vizio's senior leadership team one by one.
"I have mixed feelings," he admitted about the deal. "As the owner and father of Vizio, I am very reluctant to let it go. But as the CEO and owner of the company, I know this is the right decision to make for our hard-working employees and loyal shareholders."
Author : Saatvik Awasthi
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