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Smartphone Maker LeEco buys Vizio for $2B

Elena Neira
July27/ 2016

 

 

LeEco’s acquisition of US Vizio signals their sharp focus on extending their devices footprint – smartphones, TVs, VRs – to enable them better and faster distribution of their digital content.

 

LeEco’s Consumer Electronics and Content Ecosystem: LeEco is a conglomerate from China. They make smartphones, TVs, virtual reality, connected electric cars, and they are also in the content, digital services business with music streaming, live sports, film production, e-commerce and video streaming. LeEco is also famous for a billionaire CEO who basted Apple for being “outdated” earlier this year.

Visio is a California-based smart TV Maker: Based out of California, Vizio is a major player in the US TV space creating premium products with the latest innovations and making them accessible for everyone – from budget-minded students to custom home theaters. In the press release his CEO says that “14 years ago, I mortgaged my house to start VIZIO and since then, it has grown into one of the most well-known and respected CE brands in North America.”

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LeEco Smartphone (Source: LeEco)

Making Sense of the $2B Acquisition: LeEco’s strategy has been to expand in every direction – even outside technology and into areas like real estate. Today’s announcement of the Vizio’s acquisition is specially significant because it signals their aim to leverage their own consumer devices such as smartphones and TVs to better and faster distribute the content they produce in house such as TV channels, or purchase from outside produces such as spots events content. It also signals the continuation of China’s direct investment in US which is estimated to top record $20 billion this year. Possible we will see other investments, perhaps also in the consumer electronics and internet business.

 

@elenaneira

Resources: Pioneering Internet Ecosystem Company LeEco Acquires VIZIO for $2B, LeEco CEO says Apple is Outdated and Loosing Momentum

 

Elena Neira