Chinese mega company LeEco has bought American TV manufacturer Vizio for a reported $2 billion dollars.

 

Founded in 2002, Vizio has quickly grown to become second to only Samsung in terms of popularity in the U.S. In addition to their highly popular television sets, Vizio also has a substantial portfolio of audio equipment.

 

LeEco, which was founded in 2004, has become one of the largest online video companies in China. LeEco was one of the first Chinese streaming companies to go public and has grown to dominate the video streaming market in China. This move makes perfect sense for LeEco as it allows them to gain a foothold in the highly competitive American television market. Considering their similarity to Netflix and Amazon Video, the procurement of Vizio allows LeEco to introduce their streaming services to whole new market.

 

The immediate impact of the transition won’t be felt right away. Vizio is expected to continue to use their SmartCast platform for the foreseeable future. Future integration with LeEco’s streaming platform could be years down the line.

 

According to Winston Cheng, Senior Vice President of LeEco, all employees of Vizio will be retained. When the transaction closes the fourth quarter of this year, Vizio will continue as an independent subsidiary in Irvine, California and Vizio products will continue to be sold as normal.

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