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 brakes 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.