LeEco Denies Acquiring Vizio.
Earlier reports from China this week claimed Chinese online video platform LeEco formerly branded as LETV acquired leading U.S. LCD TV manufacturer VIZIO, according to a TechNews report.
On Wednesday, LeEco denied acquiring VIZIO stating they were not in talks, and that it would suspend trade on the Chinese bourse. The company resumed trade on Thursday, but share prices dropped 3% to RMB 50.
However, a section in the statement indicated LETV is still considering the possibilities of acquiring VIZIO through related businesses, subsidiaries, or through its founder Yueting Jia. Hence, the deal is open to interpretation by speculators in the industry.
Reports by I4U and DIGITIMES claimed LeEco had acquired VIZIO, founded by Taiwanese-American William Wang, for US $1.1 billion to US $1.5 billion. If the deal was sealed than LeEco would surpass Sony as one of the world’s top five TV brands. Currently, Wang and his family hold a 63% to 65% stake in VIZIO, and their main OEM Amtram and Foxconn each respectively have a 8.3% stake in the company.
LeEco applied for trade suspension twice, and once it lasted for more than five months. The company resumed trade on June 3, 2016, and it halted trade again from July 6-13, 2016. The halted trades were reinitiated as of August 2015, where the company acquired RMB 4.8 billion (US $717.93 million) in finances, which will be reviewed and authorized by China Securities Regulatory Commission, hence the suspended trade.