LeEco to acquire VIZIO in 2BN deal | Major Businesses | Business
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After a number of recent key moves involving content and advertising, global technology company LeEco has turned its attention to screens, with the acquisition of VIZIO.

vizio 27 JUly 2016Founded in 2002, VIZIO is a leading consumer electronics brand in North America, boasting a leading unit share in smart TVs and sound bars. The company say it is focused on delivering the ultimate home entertainment experience through its ecosystem of hardware, software and services.

LeEco claims that its acquisition, valued at $2 billion, will benefit both companies, with VIZIO offering LeEco a steady base of users and a brand that is both popular and successfully distributed throughout major North American retail channels, while it can offer VIZIO immediate global scale.

Under the terms of the deal, LeEco will acquire all of the VIZIO hardware and software operations, technology and intellectual property. The VIZIO hardware and software businesses will be operated as a wholly-owned subsidiary of LeEco, while the VIZIO data business, Inscape, will spin out and operate as a separate, privately-owned company.

The VIZIO executive management team will remain in place and will continue operating as an independent subsidiary from the existing headquarters in Irvine, California. The VIZIO brand and its portfolio of products will continue to be sold through its existing distribution channels and supported by the same outlets. VIZIO founder, chairman and chief executive officer William Wang will transition to chairman and chief executive officer of Inscape, focusing on the continued expansion and growth of the brand’s data business.

“LeEco believes in breakthrough technologies, a complete ecosystem and disruptive pricing. Acquiring VIZIO is an important step in our globalisation strategy and building our North American presence,” said YT Jia, founder, chairman and CEO, LeEco. “From its inception, VIZIO introduced a disruptive business model that changed the industry and aligns with our vision of breaking boundaries to deliver consumer-focused products, software and services.”

The transaction comes only days after LeEco was appointed by LeSports HK and Now TV as the exclusive TV advertising agent for their co-branded channels showing English Premier League football in Hong Kong.