×
You will be redirected back to your article in seconds

Vizio and LeEco Settle Dispute Over Busted $2 Billion Sale

Vizio and LeEco have settled their differences over a $2 billion acquisition that collapsed in April 2017.

LeEco, the deeply troubled Chinese technology company, announced that it would acquire the American TV manufacturer in July 2016. But the deal faltered and fell apart the following year, as China began to put the breaks on aggressive overseas acquisitions. The two companies then sought to salvage a joint venture partnership, whereby LeEco would sell Vizio products in China and Vizio would distribute LeEco’s apps on its TVs. That arrangement also went nowhere.

Vizio filed suit in July 2017, alleging that LeEco had failed to pay $60 million of a $100 million breakup fee. Vizio argued that the true reason for the deal’s collapse was LeEco’s teetering financial condition. Vizio also argued that LeEco had committed fraud, and never intended to follow through on the joint venture. LeEco countered that because the Chinese government blocked the deal, the company was not obliged to pay under the agreement.

The two sides filed a notice on Friday indicating they have settled the dispute. Terms of the agreement were not disclosed.

LeEco was once a brash upstart in the Chinese tech and media world, and was once shorthanded as the “Netflix of China.” Founder Jia Yueting stepped down as chairman last year, and has defied orders from Chinese regulators to return to China.

More Biz

  • Korea's JTBC Signs up as Iflix

    APOS: Korea's JTBC Signs up as Iflix Investor and Content Partner

    South Korea’s JTBC Content Hub has become a strategic investor in Iflix, the South East Asia-based video streaming platform. Formed only in 2011, JTBC has rapidly become one of Korea’s most influential broadcasters, with a mix of news, creative dramas and entertainment shows. Its hit dramas include “SKY Castle,” “Misty,” and “Something in the Rain.” [...]

  • American Made

    'American Made' Plane Crash Lawsuits End in Settlement

    The producers of the Tom Cruise film “American Made” have settled all litigation surrounding a 2015 plane crash in Colombia that killed two pilots. The settlement resolves pending suits in both California and Georgia. A notice of settlement was filed in Santa Monica Superior Court on Monday. Terms of the settlement were not disclosed. The [...]

  • Adam Gross UTA

    UTA Hires Disney-ABC's Adam Gross as Director of Internal Communications

    UTA has named Adam Gross as director of internal communications within the company’s global corporate communications group. He joins UTA from Disney-ABC Television where he served as director of internal communications. Gross will lead UTA’s internal communications initiatives, partnering with human resources, finance, IT, corporate services and others to foster information-sharing, collaboration and company culture, [...]

  • Josh Sapan

    AMC CEO Josh Sapan: You Can’t Science Your Way to Great Stories

    From “Breaking Bad” to “The Walking Dead,” AMC is known for turning unlikely scripts into runaway success stories. AMC Networks president and CEO Josh Sapan told the audience of Variety’s Silicon Valleywood presented by PwC in Menlo Park, Calif., that the secret to these blockbusters is taking creative risk, and not analytics and data science. “The [...]

  • MGM logo

    MGM Television Expands Unscripted Team With Three Hires

    Metro Goldwyn Mayer has announced three additions to its unscripted television team. It is currently led by Barry Poznick, president of the division and Mark Burnett, chairman of MGM’s Worldwide Television Group (“Survivor,” “The Voice”). Justin Dudek has joined MGM as senior VP of physical production, Zena Van Ackeren has onboarded as VP of talent [...]

  • Wanda Sykes Silicon Valleywood

    Wanda Sykes on Doing Business With Netflix: 'They Moved That Comma'

    MENLO PARK, Calif. — Wanda Sykes wears a lot of hats as a comedian, writer, producer and entrepreneur, and that gives her a keen sense of the ever-growing content marketplace. She also has a very clear understanding of what she’s worth in dollars and cents, as she shared Tuesday in her Q&A at Variety’s Silicon [...]

  • Jussie Smollett

    Brothers Accused of Jussie Smollett Attack Sue His Attorneys for Defamation

    The two brothers who allegedly participated in a staged hate attack on Jussie Smollett have filed a defamation suit against Smollett’s lawyers, accusing the attorneys of smearing their reputations in a bid to salvage Smollett’s image. Olabinjo and Abimbola Osundairo filed suit in federal court in Illinois on Tuesday. The suit alleges that Smollett’s attorneys [...]

More From Our Brands

Access exclusive content