2 billion dollars! Music as a wholly-owned acquisition of the United States second major TV manufacturers Vizio

Audio and video service providers as music, 27, held a press conference in Losangeles, officially announced a wholly-owned acquisition of $2 billion in the United States, the top second TV manufacturers Vizio. The transaction is expected to be completed in the next 6 months after regulatory review.

The day before, the market news, the music will be 11 to $1 billion 500 million acquisition of Vizio, but was immediately issued a statement denying the founder Jia Yueting letv. Now, by the two companies officially opened the press conference confirmed the acquisition, the two companies have been trading case it is ongoing.

The acquisition news reporter by the music as founder and CEO Jia Yueting, as well as Vizio founder and CEO Wang Yu personally appeared to announce. It is understood that the entity is the acquisition of LeEco Global, is a subsidiary of music as the controlling company, with the music network is a parallel relationship. In the future, LeEco Global is expected to be listed in the United states. Music, said the acquisition will be completed in full cash, funds from the inside. Due to the acquisition will increase the asset liability ratio as music. Therefore, as the music will be short-term equity financing.

Currently, the ownership structure in the Vizio, Wang Yu individuals and their families a total shareholding of 54.4%. The two generations of Vizio industry and commerce, Taiwan Rui Xuan technology and Foxconn (subsidiary Q-Run) were held 20% and 8% stake. April 2016, the market has been heard as the news plan to invest Vizio news. At that time, Vizio to $53.92 per share price, the repurchase of shares from Rui Rui technology shares of $131 million total value of $2 million 435 thousand. After repurchase, Rui Xuan Technology Holdings fell to about 12%. This estimate, Vizio's overall valuation of about $1 billion 637 million 500 thousand.

It is understood that, as the music in the next 6 months after the completion of the transaction, Vizio will continue to operate independently, as a wholly owned subsidiary of music, including the original hardware, software business, technology research and development and intellectual property rights. However, Vizio's data business will be split into an independent company Inscape, Wang Yu will serve as the CEO of the company, while the music will hold a stake in Inscape49%.

On the current market sales volume calculation, Vizio is currently the second largest TV manufacturers in the United States, second only to South Korea samsung. After the completion of the acquisition of Vizio in the future, the opportunity to cross the new year production capacity of 14 million units of the threshold, squeezing the Japanese SONY, becoming the world's top five TV brands.

Headquartered in southern California, Irvine, Vizio, was founded by Wang Yu, an immigrant from Taiwan in 2002. Vizio currently has two major products, television and audio, with the advantage of cost-effective rapid rise in the U.S. market. According to statistics, Vizio has more than 8000 sales outlets in the United States, television and audio products total sales of more than 70 million, of which smart TV sales of 10 million.

Because of the advantages of Vizio products to price advantage, said in the past have tried to expand the line of products other than television. However, including intelligent mobile phone or tablet computer products, are not favored by consumers, the Vizio market has been limited to the United States, in the overseas brand low visibility, currently has nearly 500 employees.

July 2015, Vizio has filed an application with the U.S. Securities and Exchange Commission (SEC), plans to raise $172 million 500 thousand through initial public offering (IPO) listing plan. However, the original plan in 2016, but there is no further news.

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