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Financially Troubled LeEco Gets a Lifeline, Receives $2.18 Billion Funding

by Jed John 7

Chinese smartphone maker cum internet giant LeEco may have just gotten a much needed lifeline which could save the company from practically hitting an iceberg in the troubled waters it is sailing currently. The lifeline comes in the form of a new round of investment from Chinese property developing firm Sunac China Holdings, estimated to be worth 15.04 billion yuan ($2.18 billion USD).

LeEco phones US market

LeEco’s CEO Jia Yueting had last year hinted that the company was facing some challenges financially, occasioned by the rapid pace with which the company tried to expand, both on the domestic plane and internationally. There were signs also that the company did drop some of its staffs and just last December, it was almost prevented from showing EPL matches live by the right holder after defaulting in its payment schedule. This latest financial lease of life comes in form of series of investments spread across LeEco’s numerous holdings.

leeco

Sunac Real Estate announced that it plans to invest 6.04 billion yuan in LeEco’s Leshi Internet Information and Technology Corp Beijing by acquiring an 8.61 percent stake. The investor also plans to invest 1.05 billion yuan in LeEco’s film production company, Leshi Pictures, by acquiring a 15 percent stake, and pay another 7.95 billion yuan ($1.15 billion) for a 33.5 percent stake in Leshi Internet’s subsidiary Leshi Zhixin, known for its smart Internet TVs. The real estate company also hopes to collaborate with LeEco in areas such as intelligent hardware, real estate, and smart homes. It also pointed at industrial real estate as an area for greater cooperation between both companies.

Read MoreSign of a Major Layoff as Image of LeEco Employees Queuing Up Surfaces Online

This, no doubt, will offer LeEco some breathe of fresh air as the funds will likely help solve some of its financial difficulties. The investment will be of benefit to us all, because now the company can concentrate in developing innovative products such as smartphones, film services, sports, and its driverless electric vehicles.

(source)

 

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  • princetom

    Wow, sure investment. Why were even company not rushing to invest in le eco. Its a good company with sweet future if steered well

  • Wolvie

    Le Eco is just too greedy expanding their business platform without a proper plan.

    That faraday future is a very bad mistake, LeEco should fire whoever suggest the stupid plan to start faraday future. But again normally the stupid CEO, CFO, or those high rank whatever position always safe, company normally will lay off those employees at the bottom of the chain. F U !!!!

    • jimberkas

      i like Le Eco and wish them well. But, yeah, I think that Faraday thing is going to be a COSTLY mistake. but kudos to them for trying, wish there were most companies trying to innovate in the electric vehicle market.

  • Muhammad Yasir

    please take good care of yourself Le Eco !

    • princetom

      Yea, we need them to perform very well, even better than last year. Just imagine using the max under 200usd now, its crazy man. How i wish, its same new trend with at least 4000 mah battery, i will buy 1 for myself and fiancee

      • hacker power

        I just bought the Le Max 2 for only 190€, that’s insane!

        • princetom

          You can say that again