LeEco In a Financial Mess, Starts Selling Property in the US
Chinese electronics and digital content major Leeco (Formerly LeTV) is now only a year and few months after its mega launch in India in serious financial problems. The brand which propelled ahead launching product after product and spending large sums of money for marketing and rebranding has a serious cash crunch.
Co-founder Jia Yueting told employees through a letter
We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited.
Reuters claims that LeEco is setup to sell the site which was previously supposed to be the company’s Silicon Valley HQ to Chinese developer Genzon Group for $260 million. LeEco had purchased this specific land for $ 250 Million. The Genzon Group has confirmed that the site’s sale is currently under negotiation.
The HQ was to be named EcoCity and was being designed to house 12000 employees. However, the fate of the chinese brand seems to be the same globally. In India the company seems to have died out as quickly as it launched. In a year and few months post launch, LeEco products are no where to be found. A company that held massive launches and big events to announce the smallest of products has recently launched the 4th gen televisions on Amazon without even an official announcement.
LeEco ventured into too many things too quickly and has simply been hurt because of the lack of a clear direction. Co-founder Jia, who has an estimated net worth of around $6 billion, has reduced his yearly salary to one yuan (15 cents/ About Rs. 10). However, last year the company went on a spending spree Aquiring US TV Company Vizio and allocating a large sum for a new EV factory to produce their Tesla competing electric vehicles Pledging a whopping $ 3.8 billion to the cause.
The company’s product portfolio contains, Smartphones, VR headsets, televisions, Content, Smart Bikes, numerous Accessories, and cars.