Once again, the rumors were true. The tech world was bubbly about a possible acquisition of Vizio by LeEco. Now the terms are official, and LeEco has said “why” it pulled the trigger on this acquisition. LeEco will now own Vizio’s Hardware and Software businesses, but the brand will remain as a subsidiary, at least for now.
William Wang, Vizio’s founder, delivered an emotional statement telling how he mortgaged his house to create Vizio 14 years ago. Vizio is not as famous as the LG and Samsung of this world, but it has quicky commanded a large market share in the USA due to the very good quality/price ratio of its products that also include PCs and soundbars. It has a large footprint in the US channels, and all of this now belong to LeEco. In essence, LeEco is buying “time”and a very experienced U.S team.
If you are not yet familiar with LeEco, remember this name because you will soon know it very well. It is a Chinese company that has a huge horizontal range of products going from electric cars to bicycles, smartphones, televisions and cable TV. LeEco’s end game is to connect different technologies to create a unique eco-system that provides a better user experience. LeEco is expected to make a significant U.S market entry this fall.
Vizio televisions are often sold in places such as Wal-Mart or Costco, and it’s a good bet to think that LeEco products would show up there soon as well, alongside Vizio, which will continue to exist as a brand, for now. Vizio is based in southern California, while LeEco is headquartered in the Silicon Valley.