Vizio Files Suit Against LeEco Over Merger Termination Fee (Jul 12, 2017)

LeEco was to have acquired TV maker Vizio, but after months of delays the deal finally fell apart earlier this year, and now Vizio is suing LeEco over non-payment of part of the termination fee the companies agreed when they made the deal. The suit also alleges that LeEco never had the means to complete the deal, using it merely as a way to bolster its perceived financial stability at a time when there were lots of reports about its cash constraints. Given that those financial problems have only worsened since the deal closed, I’m not sure Vizio is getting the money it wants anytime soon, even if it wins the case. But LeEco is just getting clobbered at this point as a result of problems entirely of its own making, all of which stem from expanding overly aggressively from what had been a reasonably strong position in the Chinese market.

via Variety

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