LeEco Halts Acquisition of U.S. Based Television Manufacturer Vizio

LeEco was interested in taking over the TV-maker Vizio as per the reports last year. However, the Chinese company has now dropped plans to take over U.S. based Vizio.

The deal has now been officially canceled and according to the recent reports from LeEco, the reason for cancellation is because of the "regulatory headwinds". However, both the companies have noted that is not the end of the relationship between the two and there might be further deals in the future. Thus, after a year LeEco has decided not to merge but rather partner on the services.

Vizio and LeEco have a new agreement in place that notifies that the two companies will continue partnership around the content. The partnership will leverage LeEco's network of available content and will be distributed via Vizio's connected app ecosystem and distribution platform. However, the current merger has been put off, TechCrunch reported.

Previously, the deal between both the companies was announced in last July costing $2 Billion. However, it was called off as there was opposition from Chinese regulators. Now again, the deal is called off and Vizio will remain a private U.S. company, TheVerge reported.

LeEco has already established itself as a market leader in smart TVs in the U.S. Its acquisition of Vizio was still unclear to many. Previously, LeEco was planning an IPO but that was derailed by LeEco purchase. The latest canceled acquisition is another announcement that has taken aback.

However, acquiring Vizio would have made a great impact on the TV market in the United States.  LeEco would have emerged as a major tech player in the country and a notable power globally. On the other side, it would have made Vizio to enter the Chinese market and reach out to more than one billion more people. However, it seems both the companies have agreed to the partnership of services exchange and an actual merger is canceled.