LeEco, a Chinese company that sells content streaming services as well as phones and other hardware, today said that it will not be acquiring smart TV maker Vizio after all. LeEco public relations emailed a statement to VentureBeat that alludes to “regulatory headwinds” blocking the deal but that does not specify the exact issue, while also reiterating the companies’ interest in integrating products.
LeEco announced its plan to buy Vizio for $2 billion in July, several months after Vizio filed to go public. Then, this past February, Vizio settled with the U.S. Federal Trade Commission, paying $2.2 million in fines, because of Vizio’s data collection practices.
Here’s the complete statement:
LeEco Global Group Ltd. and VIZIO Inc. announced today that the merger agreement to acquire VIZIO will not proceed due to regulatory headwinds. We continue to believe that there is great synergy between the two companies, and are pleased to announce that LeEco and VIZIO have reached an agreement that is a win for both companies.
Under the new agreement, LeEco and VIZIO will continue to explore opportunities to incorporate the Le app and content within the VIZIO connected CE platform, and engage in a collaborative partnership to leverage LeEco’s EUI (Ecosystem User Interface) platform, along with the brand’s exclusive content and distribution channels, to bring VIZIO products to the China market.
Following its U.S. launch in October, LeEco, for its part, has faced many issues relating to its own operations, including its Faraday Future autonomous electric car initiative. In December the Verge reported that Faraday Future’s global chief executive, Ding Lei, had stepped down. Following reports that LeEco needed more money, in January Reuters said LeEco had raised $2.2 billion in funding.