The Chinese tech company LeEco has announced its plans to acquire Vizio, the biggest US television maker for $2 billion. The deal, which would give LeEco a strong foothold in the US television market, was announced at a press event held at Los Angeles. The deal is expected to close by the end of 2016.
Under the acquisition, Vizio will be operated as a separate entity. The company’s founder and chief executive officer William Wang will move from the ownership of Vizio. The replacement for Wang is yet to be announced. The rest of the executive team will remain intact for the company.
Meanwhile, Wang will undertake the responsibility of Inscape, Vizio’s data business. Inscape is separated from Vizio as a privately held firm. Wang will receive 51% stake in Inscape and LeEco will hold the other 49%.
“As the owner and father of Vizio, I am very reluctant to let it go. But as the CEO and owner of the company, I know this is the right decision to make for our hard-working employees and loyal shareholders,” expressed Wang in the conference.
Commenting on the acquisition, Yueting Jia, Founder, Chairman and Chief Executive Officer, LeEco said, “Acquiring VIZIO is an important step in our globalization strategy and building our North American presence.”
“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,” he added.
Vizio was started in 2002 is a major player in the television space. Flatscreen televisions and sound bars are the major highlights of Vizio. The company faced severe criticism for a technology it used in smart televisions, which collected information about users’ content viewing habits. LeEco’s acquisition of the company will give it a global exposure.