LeEco is going out with a bang, not a whimper. After trying and failing to acquire Vizio, the company started tumbling downhill in the financial department pretty quickly. We’ve seen desperate financing attempts, layoffs, and all kinds of other moves that paint a pretty clear picture that LeEco is in deep trouble.
To make matters worse, there was a $100 million buyer-termination fee in the Vizio acquisition that LeEco is required to pay since the deal wasn’t finalized, but LeEco has tried to renegotiate the deal to try and slim down how much money it owes by as much as 60%. As a counter, Vizio is bringing in the lawyers.
Vizio’s lawsuit claims that LeEco was never actually able to purchase the TV maker and mislead executives about the financial state of the company prior to the acquisition, and they were only trying to scoop up Vizio to look financially stable and gain access to the resources that the deal would bring. That’s not a good look.
On top of that, Vizio claims that LeEco wanted to use the merger to try and gain access to some of Vizio’s customer information for their own gain, which is incredibly shady.
It always takes some time for lawsuits to work their way through the court system, but at the rate LeEco is going, they’re going to be bled dry from legal fees if they don’t mismanage themselves out of existence first.