standard Vizio acquired by Chinese company LeEco for $2 billion

LeEco-Vizio

By now you’ve probably heard of Vizio, it is in fact the largest TV manufacturer in the United States, making some pretty impressive and quite affordable smart TV units, which allow you to run all sorts of apps and a built in browser to play no deposit bingo for fun. Vizio also makes some pretty impressive sound setups, including the very attractive sound bars, one that I bought for myself, bringing 5.1 surround sound to your living room on a budget.

On the other hand not many people have heard of Chinese manufacturer “LeEco”, who hav just purchased Vizio for $2 billion. In 2010 LeEco started off as a video streaming service, not much different than Netflix, except of course it targeted the Chinese market,  LeEco also moved on to create/provide their own content ranging from TV shows to sports. After gaining a foothold in the video content, LeEco moved on to start producing “high-end” smart phone; LeEco’s foothold spreads a lot further though, as they’ve recently worked with Aston Martin on the Rapide, and have even delved into making an Android Bicycle (it even comes with 4 GBs of RAM).

Even with LeEco’s wide spread of interests, they still remained quite unknown outside China, which is why they chose to acquire Vizio, rather than spend an equal amount on trying to penetrate the market, they simply bought a potential competitor who already has an established name in the field.

“We could have chosen to use the $2 billion to enter the market organically, But I think we see significant risk there. [Vizio] is a 14-year effort to build an excellent brand, to have the channel built, a great product. And from that perspective, we think it’s a lot more synergistic to partner this way, rather than fight it out in the market,

Beyond just selling TV’s LeEco are also looking into the possibility of future cloud services, apps and more:

This deal is much bigger than just selling TV sets, “We plan to incorporate our ecosystem to Vizio products, including content, applications, cloud services and much more.”

Via: theVerge

About the Author

Ali is a dental school graduate currently living in Amman, Jordan; born and raised in the US, a tech lover with a serious addiction to all things sweet. He is the co-founder of GeekOnGadgets, and a senior editor at our Sister site MyNokiaBlog.com.

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  • Techy Keeday

    woww…superb.

    Chinese market growing day by day.They have standalone capability to hit with some new technology.
    For more tech related news :

    http://techykeeday.com