Chinese electronics giant LeEco will not acquires U.S.-based TV maker Vizio as announced, the two companies said today. The deal has been hitting roadblocks according to recent reports, and now it’s officially ended as a result of “regulatory headwinds,” according to LeEco.
The companies are quick to note that this isn’t the end of the relationship between the two. There’s a new agreement in place that will see the two “explore” continued partnership around content, leveraging LeEco’s network of available content via Vizio’s connected app ecosystem and distribution platform.
LeEco had originally planned to acquire Vizio for around $2 billion, first announced last summer. Even after a report revealed privacy issues around Vizio’s data collection practices, and a resulting FTC charge, the deal was said to be still in progress as of February. The deal had “stalled” as of late March, however, “pending regulatory approval.”
The continued relationship between LeEco and Vizio will include bringing Vizio hardware to the Chinese market, LeEco says, but it’s not yet talking about specifics regarding its path to making that happen.