VIZIO, a company well known in the US for making decent yet affordable TVs, may be acquired by Chinese technology company LeEco very soon if reports are to be believed. On top of that, LeEco may also be planning to hold an event in the US to announce this development according to the company’s statement on Friday.
The acquisition of VIZIO will benefit LeEco in many ways. For starters, it’ll help give them a foothold in the US market seeing how VIZIO already has a good reputation there. This will allow LeEco to quickly and easily breach the US market.
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Aside from that, LeEco will also benefit from VIZIO’s resources like their television production plant in Mexico or their knowledge of the international market and how to handle it, making LeEco’s global conquests much more manageable.
On top of all this, the acquisition will also benefit Indian consumers since LeEco can apply their extra resources to improving their presence in India.
What do you make of LeEco’s acquisition of VIZIO? Do share what you think down in the comments below.
Letv is going all out with acquisitions: seems like they just bought coolpad too… Surely they’re planning something big, but while you can clearly see the pattern with vizio’s acquisition, the coolpad one is more tricky to judge… Probably they know what they’re doing, and if they fail they’ll hardly care: they’d be like “damn, I’ve spent all of my spare pennys, now I need to change the paper money for the next thing on my shopping list… Oi, netflix, do you have the change for a 1 billion dollar paper?”
They did not buy Coolpad. They are increasing their stake in Coolpad to 28.9%, that’s a far cry from a majority stake that could be considered as buying it. They also have a stake in TCL Multimedia and other things. Buying Vizio makes little sense as TV’s don’t have much of a future so remains to be seen what they actually do.
BTW this is supposed to be a new Coolpad http://www.mtksj.com/uploads/allimg/160725/1-160H51G641112.jpg
Actually that is the majority stake in Coolpad, LeEco is the majority shareholder with this newest acquisition.
“TV’s don’t have a future”. According to who? Are people in the US (where Vizio sells) not going to buy TV’s anymore? Do you have any actual data to back this bold claim up?
he’s just a whacko about Google Glass and Holo Lens ?
The future of TVs is OLED, only Samsung and LG will come out on top as Sony and Sharp learned the hard way.
That;s funny because Samsung has no plans for an OLED TV.
“Samsung vice president Park Dong-Gun has said unequivocally, to The Korea Herald, that the company has no intention to manufacture OLED televisions.” – 4 May 2016
The future of TV’s isn’t limited to OLED, the future is in higher resolutions and newer display technology. Samsung, Sony, Panasonic and several others have all said OLED is too expensive to manufacture. The immediate future is in 4k and Vizio is one of the leaders in that segment in the US.
The cost of OLED comes down every year. At some point every display you look at will be one.
If that display you are looking at is from LG then yes it will be OLED, but not every TV you see will be. Some will be OLED, some will be LED, some will still be LCD, some will be nanotechnology like Samsung’s Quantum Dot.
You’re really wasting your time with a teenager that takes infos here and there over the internet
Especially one who thinks glasses are going to replace TV. He is stuck living in one of those 1980’s movies about the future in “2010”.
Not accurate. Leeco is the largest shareholder of Coolpad btw. Thier intend to purchase VIZIO simply implies their interest to enter the US market with their online services or of some sort. They are the largest internet TV portal in China anyways. I don’t think TV has no future. Why would it not? It would just be evolutionized. The features on a TV will only be much different in the future, like smart TV. Connected to the internet and etc. Slowly closing in the gap between a TV and a computer.
lol you are a weird one. When you don’t understand something, maybe stay on the sidelines.
LeEco payed some 350+ million for 18% last year and now added another 11% for 150+ mil for a total stake of 28.9%. Yes they are the biggest shareholder but that doesn’t mean control. Control means 50+1.
When you comment on Vizio, do you know their valuation, their revenue, their income, their sales trajectory? Do you know how big LeEco is, how much cash they have? For LeEco to buy Vizio it would be a huge financial effort that makes no sense at all unless they get it for cheap.
If you want to get informed i suggest you start with Vizio’s IPO prospectus.
The TV as a device doesn’t have much of a future because of glasses. Shorter term there are a few other factors that have a negative impact on sales.
Controlling interest doesn’t always have to be 50+1, that is the ideal situation but it is not the only one when it comes to investing. It really all depends on how Coolpad shares are distributed and if all shares are voting shares. There are several companies around the world where the controlling stake only has around 30% of the company, but they have a majority of voting shares. Without seeing a detailed breakdown of Coolpad stock it is a futile argument.
As for LeEco’s buying Vizio it would obviously have to include other investors or financing. LeEco doesn’t have the equity for a full fledged takeover.
A very mature response from someone who clearly lacks the knowledge. Apparently, you don’t know how corporate shareholder structure works. Thank you for sharing the bit of info on how much shares was bought and when was it purchased which I already know. In regards to your 50+1 for a controlling authority is childlike assuming that there are only 2 shareholders and one having the 51% authority. Corporate size shareholders can vary to the tens and hundreds. That includes the sleeping small ones and the major voting holders. And there’s also the internal governance which is the board of directors who establish the company’s strategic direction in the interest of the shareholders. With that being said, it comes down to the voting of shareholders on any major decisions that it might have. But currently, LeEco holds the majority that gives it a stronger voice. As it stands, LeEco holds power share over the company.
And in regards, to the acquiring Vizion, I think you don’t know how this works too. It does not mean it’s coming out of LeEco’s pocket alone. LeEco could gain support from outside investors, loans, government grant and etc to perform a takeover. This kind of practices is normal in industries. You should hold the urge to comment if you don’t know what you’re talking about.
Actually, I’m fairly sure control doesn’t necessarily equal 50+1, especially since there’s more than two sides involved.
not at all dude, you can get the control with 30% if you have 30% and the rest is exploded into small hands.
TV has no future – we’ve got a visioner here!
Have you ever heard this one:
“The reports of my death have been greatly exaggerated.” ?
No need to go into a long reply here. I’ll just say you don’t know what you’re talking about.
Meanwhile, the Vizio acquisition is smart from my point of view. LeEco got into the phone business to put their content into everyone’s hands and that’s the exact same thing they’ll probably do with Vizio tv’s. Super smart tv’s bundled with their content for free or at least on the cheap. Buy a Vizio and get a year of their version of HBO, Netflix etc for free. Vizio’s are already good value for money so it makes sense.
LeEco PLEASE come to PAKISTAN !
i FREAKING BEG YOU !