LeEco on Monday confirmed it has withdrawn its $2 billion bid to acquire Vizio. The Chinese startup blamed “regulatory headwinds” for the decision. The two companies said in lieu of an acquisition, they’ll embark in a “partnership.”
What exactly the partnership will include remains to be seen. LeEco has been trying to break into the U.S. by offering content services and a connected ecosystem; perhaps Vizio’s reputation can help the company achieve its goal.
LeEco’s Le app will reportedly be included on some Vizio products, while Vizio products will be brought to China.
Following an announcement of the acquisition last summer, the deal quickly hit a roadblock after it was discovered Vizio was collecting user data; the company was ultimately fined by the FTC. Then, last month, the deal stalled because of regulatory issues, which apparently couldn’t be overcome.
Today’s news will no doubt negatively impact LeEco’s hopes of breaking into the U.S. market, which it attempted to do last year by offering a lineup of affordable smartphones.