Vizio acquired by LeEco for $2B

[lxm]

http://www.theverge.com/2016/7/26/12286756/leeco-buys-vizio-tv-company-2-billion-acquisition

[sailfast]

So much for the S-1. Interesting move. If your goal is to work on software this seems like a pretty good deal for the CEO - 51% of the new spin-off and a bunch of cash and 10 years of "guaranteed" license revenue. Was this an LBO or straight cash? Anybody know? Been reading Barbarians at the Gate lately and have taken a new interest in management agreements and payouts in these things.

[brianbreslin]

How does LeEco have so much money? They are also funding Faraday Future, and have been buying up tons of stuff lately.

[riobard → brianbreslin]

From Chinese stock market.

[brianbreslin → riobard]

so effectively thin air. this will surely end well. /sarcasm

[Apocryphon]

I was hyped for Vizio's computers based on this article. Shame it never really happened. http://www.theverge.com/2012/6/15/3076519/vizio-reboot-pc-am...

[benmarks]

A bit more about the variously-involved company behind the deal: http://www.wsj.com/articles/the-chinese-company-behind-the-v...

[Animats]

There goes the last American TV manufacturer.

[protomyth → Animats]

cheap TV manufacturer Element was supposedly an American manufacturer, but that seems to be a bit of a lie http://thinkprogress.org/economy/2014/11/12/3591517/element-...

Interesting the article says "shipped out to Walmart, Target, Meijer, Sam’s Club, and QVC." but the title only mentions Walmart.

[jonknee → Animats]

Vizio never manufactured a single television.

[Animats → jonknee]

Their Tijuana plant was operated by an outsourcing company, but Vizio seems to have owned it, because it's part of the LeEco deal.

[frank_jaeger → Animats]

I can't say I know its exact manufacturing origins, but I can say without a doubt my TV is a Vizio.

[jonknee → frank_jaeger]

Vizio designs products and has other companies make them. They have ~400 employees, all in the US. They aren't making TVs themselves.

[givinguflac → jonknee]

Does this really matter? Your statement is true for nearly every electronic device.

[joenathan → givinguflac]

LG, Samsung, Sony to name a few. Having vertical intergration can lead to huge wins

[btian → jonknee]

And Apple never manufactured a single iPhone.

So?

[Teever → btian]

So now the Chinese companies that did do that manufacturing are buying American companies.

America's hens have come home to roost.

[james4k]

Another acquisition to put Minecraft ($2.5B) in perspective ...wowzers.

Have to admit I am kind of bummed after just buying a Vizio TV.

[bluthru]

>"As the owner and father of Vizio, I am very reluctant to let it go. But as the CEO and owner of the company, I know this is the right decision to make for our hard-working employees and loyal shareholders."

Why?

[burnitdown → bluthru]

Money. Don't be daft

[bluthru → burnitdown]

Yeah I get that for the sell-out owners, but how is it better for the employees? I'm sure many of them took pride in working for the only American TV manufacturer.

[burnitdown → bluthru]

There is no benefit which is why he failed to give any.