By many accounts, LeEco was set to be the next major player in the US tech market. But its bank accounts indicate that this won't be the case. Everything is going south for the Chinese startup and in the latest blow, Vizio is suing the company for $US60 ($78) million. Vizio claims that LeEco executives misrepresented its finances in a failed acquisition deal.
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LeEco's dream of breaking into the US market and competing against Apple is now farther from reality than ever before. The Chinese tech firm's American operation has had a difficult year with missed payrolls, disappearing employees and overall poor sales. But the latest development in LeEco's financial woes is sure to make things go from bad to worse.
LeEco, the so-called "Netflix of China", was supposed to take the US tech scene by storm. Instead, its ambitious plans appear to be collapsing. Six months after a splashy US launch, Bloomberg reports that LeEco missed its 2016 US sales goals "by a wide margin" and that it is planning on cutting jobs.
A year ago, Chinese tech conglomerate LeEco, often known as "the Netflix of China", was flying high. By many measures, the quickly growing company appeared poised to become a global consumer electronics powerhouse. How quickly things have changed course.
LeEco, the Chinese company that bought US-based TV giant Vizio back in July, just announced its first smartphones in the US. They have great specs, run Android, and the good news is, they are super, super cheap.
Unless you're spending a lot of time in mainland China you've probably never heard of LeEco. But you should know LeEco. In 2015 the company sold more phones than Apple. Its web series, Go Princess Go, was one of the most watched web series in China, before censors had it edited due to too many bisexual time travelling shenanigans. And two days ago it bought American television giant Vizio.