Troubled LeEco sells TV business shares in a deal worth USD 105 M

Leshi Zhixin, LeEco’s television subsidiary, on Tuesday night announced that had received RMB 720 million (USD 105 million) financing from Truly Electronics Co. The new buyer will be the fifth largest shareholder of Leshi Zhixin, with 2.34% shares in the company after the deal.

Truly International, Truly Electronics Co.’s parent company, is the main supplier of touch screen and touch modules for LeEco’s smartphones. On top of that, the supplier’s subsidiaries provide other smartphone components like phone shells to LeEco.

Truly Electronics Co. claimed that it believes LeEco’s large-screen TV operations are promising, and that the streaming website Leshi has an innovative and effective ecosystem and business model. All the investment will be used in helping the growth of Leshi Zhixin, Truly Electronics Co. told Chinese media.

The supplier’s investment is a breath of fresh air for cash-strapped LeEco. In November 2016, LeEco CEO Jia Yueting confessed that the company was facing funding challenges.

This January, China’s leading real-estate company Sunac China announced its strategic investment in LeEco, and secured the position as the second largest shareholder in LeEco in a deal worth RMB 16.8 billion (USD 2.4 billion).

Also read: Cash-strapped LeEco lands USD 2.4 B investment and obtains its second largest shareholder

(Top photo from Baidu Images)

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