LeEco Global Group and Vizio announced Monday that they have dropped a proposed $2 billion merger deal between the CE companies.
An official speaking for both companies said they decided not to proceed “due to regulatory headwinds.”
“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,” the official said.
Under a new deal, LeEco and Vizio will continue to explore opportunities to incorporate the Le app and content within the Vizio connected CE platform. They’ll also partner on opportunities centered on LeEco’s EUI (Ecosystem User Interface) platform, along with “exclusive content and distribution channels,” to bring Vizio products to the China market.
In a move that seemed poised to shake up the smart TV market with an eye fixed on global scale, LeEco announced plans to acquire Vizio last July. That deal called for Vizio’s hardware and software business to be owned and operated as a wholly owned subsidiary of LeEco, with Vizio’s data business, Inscape, to be spun out as a separate, privately owned company.