Magazine article Screen International

Vizio Sues Chinese Tech Giant LeEco over Failed Merger

Magazine article Screen International

Vizio Sues Chinese Tech Giant LeEco over Failed Merger

Article excerpt

LeEco owns Le Vision Pictures which invested in The Great Wall.

US smart TV manufacturer Vizio has filed an $110m lawsuit against LeEco, claiming that the Chinese tech giant never had the funds to close the $2bn acquisition that it scrapped earlier this year.

LeEco announced plans to acquire Vizio last July but cancelled the deal in April 2017, citing “regulatory headwinds” in China.

In the lawsuit filed in the US District Court in Santa Ana, California, Vizio claims that LeEco had already begun to collapse “due to severe cash flow and financial problems” at the time that its $2bn acquisition of the US company was announced.

Vizio also alleges that LeEco pursued the deal because it wanted to obtain access to the US company’s client and private customer databases and it also “desperately needed to either obtain the instant financial stability, credibility, and resources that a merger with Vizio would bring”. …

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