LeEco and VIZIO, Inc., have jointly announced that LeEco will acquire VIZIO for $2 billion. The VIZIO hardware and software businesses will be owned and operated as a wholly owned subsidiary of LeEco, while the VIZIO data business, Inscape, will spin out and operate as a separate, privately owned company.
LeEco is a global company that provides breakthrough experiences through an open, integrated ecosystem enabled by its Internet and cloud platform. LeEco develops intelligent hardware that serves as the interface to connect individuals, interact with them and to enrich their lives through premium content and applications.
“LeEco believes in breakthrough technologies, a complete ecosystem and disruptive pricing. Acquiring VIZIO is an important step in our globalization strategy and building our North American presence,” says YT Jia, Founder, chairman and CEO, 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.”
LeEco and VIZIO state the acquisition benefits both companies with VIZIO offering LeEco a steady install base of users and a brand that is both popular and successfully distributed throughout major North American retail channels. LeEco will provide VIZIO immediate global scale to bring its innovations to consumers worldwide.
“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,” says William Wang, founder, chairman and CEO, VIZIO. “As we enter a new chapter with LeEco, I'm humbled by the hard work and dedication of VIZIO shareholders and employees. Their unwavering faith in the brand and commitment to excellence is what made this venture possible. 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.”
The VIZIO executive management team will remain in place and will continue its operations as an independent subsidiary from its existing headquarters in Irvine, Calif. The VIZIO brand and its portfolio of products will continue to be sold through its existing distribution channels and supported by the same North America-based customer service. Wang will transition to chairman and CEO of Inscape, with a focus on the continued expansion and growth of the brand's data business.