LeEco seeks investors for TV division | Major Businesses | Business
By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Struggling Chinese technology group LeEco is aiming to raise $462 million (¥3 billion) in investments to rescue its TV arm.

leeco logoThree investors have already been secured, along with a quarter of the financial target, according to a statement from LeShi Internet Information & Technology Corporation – LeEco’s Shenzen-listed company and the main shareholder in LeEco TV. LeShi and an investment firm controlled by property developer Sunac China Holding – which in turn holds an 8.61% stake in LeShi – are two of the investors.

LeEco TV is now worth ¥12 billion, half its value a year ago, the company said. The TV subsidiary reported revenues of ¥4.9 billion in the first half of 2017, down by 35% from the same period in 2016, while its loss increased five-fold to ¥281 million in the same period.

In November 2016, LeEco’s founder Jia Yueting admitted the technology conglomerate faced financial problems due to the rapid pace of growth in its various divisions. It had diversified quickly into developing smartphones and new-energy cars, from its core online video and television units, creating cash flow problems and an uncertain future.

A merger with US TV manufacturer VIZIO was subsequently shelved, and a Shanghai court ordered $182 million in assets controlled by Yueting to be frozen over unpaid debts.

Yueting, who lives in the US, was told on 25 December 2017 to return to China by the Beijing branch of China’s securities regulator. He has said his wife and brother will return instead to act on his behalf in the matter.
Add comment
  • No comments found