LeEco

LeEco (till January, 2016 LeTV was called) is the global technology company founded in 2004. LeEco integrates in the uniform vertically integrated ecosystem the largest in China Internet video the platform and library of video and audio of content, sports and musical broadcastings own line of smart devices (smartphones and accessories to them, smart TVs, electric vehicles) and also numerous mobile applications and services. Total capitalization of the company makes more than 50 billion dollars.

The daily audience of its online movie theater, according to own data of the company, makes about 50 million people, monthly — 750 million people. The LeEco library contains more than 100 thousand series and 5 thousand movies.

Except online movie theater, LeEco is engaged in electronic trading, production of electric vehicles, cloud services and mobile devices. In April, 2015 the company provided first generation of the smartphones, having sold less than in a year about 4 million devices.

Performance Indicators

2016

LeEco increased the volume of net profit by 10-35% in comparison with indicators of 2015 (About 630.3299 million ~ 773.5867 million. Yuans in 2016 against 573.0272 million. Yuans in 2015).

Considerable sales of smartphones, TVs and other smart devices in the markets of China, India, the USA and Russia became a basis of annual growth of the company. LeEco in 2016 received extensive new audience of users, having reached the international level that will provide to the producer stable growth in the future.

History

2017

LeEco attracted over $2.4 billion investments

The Sunac China company, the Chinese developer, announced at the beginning of a year acquisition of stocks of the companies entering into technology holding LeEco for the total amount of 15.04 billion yuans (or $2.18 billion). Besides, two more investors — Huaxia Insurance and Le Ran Investment and Management Partners — invested 1.8 billion yuans ($260.93 million) in the companies of LeEco holding. Thus, total investment was 16.84 billion yuans (or $2.44 billion).

In particular, Sunac China acquires 8.61% of shares of the Leshi Internet Information and Technology Corp Beijing company placed at the Shenzhen exchange for the amount of 6.04 billion yuans ($875.58 million), 15% of stocks of film company Le Vision Pictures for the amount of 1.05 billion yuans ($152.21 million). In addition, Sunac China for 7.95 billion yuans ($1.15 billion) is received by control over 33.5% of the shares Leshi Zhixin — the LeshiInternet Information and Technology Corp Beijing subsidiary company making smart TVs.

As noted, acquisition of stocks of LeEco is made within an investment strategy of Sunac assuming use of opportunities of investment into the companies connected with technology innovations and development of consumer market. It is expected that partnership with LeEco will allow Sunac to develop business in such relevant in areas as intelligent hardware, the real estate and "smart" houses. Cooperation with LeEco opens to holding new opportunities in market development of the real estate thanks to new technologies, noted in the company.

2016

LeEco localizes production of TVs in Russia

The Chinese holding LeEco is going to localize production of TVs under the brand in Russia at the beginning of next year. The company involves a production line at the partners, importing spare parts from abroad.^[1].

Localization will allow to reduce the cost of TVs for the Russian consumer as the customs duties on import of finished products are higher, than for import of components. Now the company prepares the kontetny platform: the head of LeEco in Russia and Eastern Europe Victor Xu noted that the company does not want "sell "naked" TVs".

LeEco announced purchase of the American vendor of Vizio

LeEco announced purchase of 100% of the American manufacturing company of consumer electronics of Vizio today. Transaction amount was $2 billion. Acquisition of Vizio should help LeEco to strengthen the positions in the market of the USA, at least as regards Smart TV as Vizio is included into top three of the market of Smart TV in the USA, along with Samsung and LG. And according to NPD Group from January till April, 2016, Vizio wins first place on sales of "smart" TVs in North America^[2].

LeEco will become the full owner of business on production of TVs and audiobusiness of Vizio, meanwhile, business of data centers will remain under control of Vizio. 51% of Inscape Data Services will own the current head of Vizio William Wong, and 49% will belong to LeEco.

As for electronics of Vizio, it is completely integrated into LeEco ecosystem. It means that on digital devices of the company access to content, technologies, Internet and cloud services of LeEco will appear.

Russia?

The largest American online movie theater Netflix began work in Russia since January 1, 2016. To Netflix it is available in the majority of the countries of the world.

Netflix" — LeEco online movie theater can enter the Russian market "Chinese, Kommersant writes in April, 2016 ^[3]. According to a source of the edition familiar with plans of the company, LeEco is going to begin work in the Russian Federation and to open here office in the summer of 2016. "There are no more exact terms yet" — he added.

LeEco, according to the interlocutor of the edition, intends to offer the Russian consumers both the video platform, and mobile devices. "The option as with purchase someone from participants of the Russian market, and with creation of own platform is possible" — he claims.

Other source of the edition in the market reported that the president of the international JD.com business group Victor Xu and the CEO of JD.ru on logistics and services Alex Vasilyev pass to work into LeEco. Xu will be responsible for development of the company in Russia, the CIS and Eastern Europe, and Vasilyev — separately for the Russian market. Vasilyev confirmed to the edition leaving JD, having added that he conducts negotiations with LeEco. Xu did not confirm information on transition from JD to LeEco, but also did not disprove^[4].

2015

In 2015 LeEco left to the USA and India, Russia can become for the company the third international market.

Notes