Market Insight

Impact of Cancellation of LeEco-Vizio Acquisition

April 12, 2017  | Subscribers Only

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In April 2017, LeEco and Vizio announced jointly that the $2 billion acquisition of Vizio by LeEco would no longer proceed. Instead, the two companies would pursue some limited strategic partnerships. What are the implications of this? Certainly in the short term, we do not see a major impact on Vizio's North America TV business, but there may be a long term challenge for expansion beyond the North America market without finding alternate sources of capital, either though another private investment opportunity or via public options. For LeEco, this is a significant blow to the prospect of gaining a rapid foothold in the US market, and continued indications of financial challenges represent an ongoing difficulty. The attached report delves into the impacts, and examines some possible outcomes, including the potential for Foxconn to approach Vizio to further ambitious global growth goals.

Geography
China USA
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