Vizio Snatched Up by Chinese Company for $2 Billion

American TV manufacturer to be wholly acquired by tech company LeEco

Last Updated: July 26, 2016 @ 2:12 PM

American TV manufacturer Vizio is set to be acquired by the Chinese tech company LeEco, the companies announced on Tuesday.

At an event in Los Angeles, which was livestreamed on Facebook, the companies said that LeEco will acquire Vizio’s hardware and software operations, technology and intellectual property¬†for $2 billion.

The deal, which is expected to close in the fourth quarter of 2016, expands the Chinese company’s push into the United States. Vizio’s management team will remain in place, and the company will continue to operate as an independent subsidiary from Irvine, California.

“Fourteen 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. As an entrepreneur, I couldn’t be more proud of what has been accomplished,” William Wang, Vizio founder, chairman and CEO said in a statement.¬†“I’m excited to see how LeEco’s global reach and resources will elevate VIZIO as we continue to bring great technology, innovation and value to our consumers.”

“Acquiring VIZIO is an important step in our globalization strategy and building our North American presence,” said YT Jia, Founder, Chairman and CEO of LeEco. “From its inception, VIZIO introduced a disruptive business model that changed the industry and aligns with our vision of breaking boundaries to deliver consumer-focused products, software and services.”

BofA Merrill Lynch acted as advisor to the special committee of the VIZIO board of directors, and Latham & Watkins LLP served as legal counsel for VIZIO on this transaction.