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LeEco and Vizio have aounced that the TV brand would become a wholly owned subsidiary of the Chinese conglomerate, for a price of $2 billion.
Along with Samsung, Vizio has been one of the two most-popular TV brands in the U.S. over the last few years. Vizio TVs are among CNET's most-recommended models.
The news, rumored for the last couple of weeks, came from Vizio founder and CEO William Wang on stage at a joint press event in Hollywood. Vizio's hardware and software businesses will be owned and operated as a wholly owned subsidiary of LeEco, while the Vizio's data business, Inscape, will be spun off.
Vizio founder William Wang on stage aouncing the aquisition.
Ashley Esqueda/CNET"Fourteen years ago, I mortgaged my house to start Vizio and since then, it has grown into one of the most well-known and respected CE brands in North America. As an entrepreneur, I couldn't be more proud of what has been accomplished," said Wang.
The remainder of the event served to introduce LeEco to the United Stated and world press in attendance. The company has numerous products, including TVs, virtual reality, smartphones and even a concept electric vehicle.
Vizio's executive management team will remain in place, and it will continue operations an an independent subsidiary in Irvine, CA. Vizio products will continue being sold as normal, and customer service will remain based in the U.S.
The transaction is expected to close in the fourth quarter of the year. How the acquisition affects Vizio's products, which we've long lauded as excellent values, remains to be seen.
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