The move was announced last year and would have given LeEco a foothold in the Land of the Fee. The company wants to expand its business beyond Chinese market.
Now it seems that the deal has folded due to “regulatory headwinds.”
In a statement, the companies said:”We continue to believe that there is great synergy between the two companies, and are pleased to announce that LeEco and Vizio have reached an agreement that is a win for both companies … LeEco and Vizio will continue to explore opportunities to incorporate the Le app and content within the Vizio connected CE platform, and engage in a collaborative partnership to leverage LeEco’s ecosystem user interface platform, along with the brand’s exclusive content and distribution channels, to bring Vizio products to the China market.”
However there could be other reasons both companies have been getting bad news lately. LeEco is struggling financially and earlier this month it was reported that the company had delayed payroll for its US employees. Vizio was fined the company $2.2 million by the FTC to settle a case involving the TVs’ data collection techniques.