LeEco, Vizio Call Off $2 Billion Deal on 'Regulatory Headwinds'
After missing a six-month deadline for completing LeEco's buy of Vizio, the companies announced Monday the deal is off due to “regulatory headwinds.” They signed a separate agreement under which Vizio connected TVs and displays will be sold in the…
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China market, and they will incorporate LeEco’s user interface, content and distribution channels. The companies announced last summer that LeEco would buy Vizio for $2 billion as part of its strategy to bring its ecosystem of smart TVs, content and cloud services to North America. The deal also involved the spinoff from Vizio of Inscape, supplier of smart TV viewer data tracking services, which Vizio bought in 2015. Vizio still plans to spin off Inscape into a separate business entity as part of its strategic future growth plans, a Vizio spokeswoman emailed us. Vizio agreed last fall to a $2.2 million settlement (see 1702060042) after the FTC and New Jersey brought a complaint against the Inscape viewer-tracking feature, which spawned two dozen video-privacy class-action lawsuits in federal courts.