LeEco likely to invest in US TV vendor VIZIO
There have been news doing the rounds that internet and technology giant LeEco is in talks to acquire US TV vendor VIZIO. Rumor of the acquisition have been circling in the air for over a month now. One concrete proof of it is that LeEco and VIZIO will be jointly hosting an event in Hollywood on July 26, 2016. It is likely that the details of the deal will be announced at this event.
LeEco has emerged as the world’s fastest-growing internet ecosystem company over the past few years. It is a well-known brand in Chinese market and has also expanded to coutries such as the US, India and Russian. The company harbors global expansion and has been eyeing strategic investments across various parts of the world.
VIZIO TVs, on the other hand, are quite popular in the US owing to their low prices and premium quality. The Irvine, California-headquartered company also offers sound bars, tablets, ultrabooks and even mobile phones in addition to its TV product line.
From the very inception, VIZIO has been making high quality products with much lower prices than its competitors. It is currently one of the leading HDTV companies in the US and the numero uno in the sound bar product category in the country.
If this deal goes through, LeEco may even end up owning VIZIO’s plant in Mexico and can use it to produce their own TVs. The manufacturing setup is located in Tijuana and it is a fairly large size TV production facility that could amp the production power for LeEco considerably.
This possible deal will also have giant implications on the smart TV business of LeEco across the globe. The technical knowhow and the operations experience of VIZIO will help LeEco in fast tracking its overseas expansion plan.
In the India market, LeEco has already become a household name thanks to its high spec smartphones that are being offered at competitive prices. It is being touted that LeEco is mulling a launch of its Super TV in the coming month. The possible deal between LeEco and VIZIO is likely to have a positive impact on the Indian market as well. LeEco will be looking at using the synergies acquired through this purchase and pass it on to the India market.
However, so far there is no confirmation on whether this deal is confirmed or not, so we will have to wait a little longer for the whole picture to unfold.