LeEco buys Vizio for $2 billion. (Photo : Twitter)
LeEco is the new owner of Vizio after a $2 billion buyout deal and many are wondering what China's newest headline-grabbing firm is up to now.
On Tuesday, LeEco became among the top subjects of media headlines for procuring the United States-based TV manufacturer Vizio at a hefty $2 billion tag price.
According to The Verge, the acquisition which was announced on Tuesday during an event held in Los Angeles, California just gave LeEco a steady foothold in American soil.
This news comes as Vizio CEO William Wang revealed his leave from the company he founded.
"I have mixed feelings," he told the press in a speech that The Verge believes sounded more like a eulogy.
"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," he continued.
LeEco has yet to name a new chief executive for their newly acquired company but most media outlets want to know the reason why the Netflix of China buy it in the first place.
As Wired recalls, LeEco vowed to enter the U.S. online streaming services market in spring.
When compared to Netflix, LeEco actually has an advantage because it is selling actual hardware where its services can be acquired.
"Our strategy is to integrate our platform-including software and services-with devices," Leeco's global head of corporate finance and development Winston Cheng told Wired.
Cheng explained that the acquisition of Vizio was strategic because the TV manufacturing company has already started on a path similar to what LeEco planned to go in.
Because Vizio already began collaborating with content providers in order to bring Internet video to televisions, buying the company speeds up LeEco's process of integration of the technologies.
