LeEco Will Reportedly Be Selling Its Silicon Valley Base

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LeEco is said to be looking to sell its U.S. base situated in Silicon Valley.

Rumors started emerging in the media in relation to LeEco. The Chinese tech firm is said to be looking to sell its U.S. base. Situated in Silicon Valley, the company had big plans for the facility. However, financial issues seem to be disrupting its strategy.

LeEco Moved To Silicon Valley Less Than A Year Ago

The Chinese tech firm acquired its Silicon Valley facility from Yahoo. The base is spread across 49-acres and was set to become the company’s U.S. headquarters. LeEco presented its detailed plan for the location back in October 2016. It was revealed during the company’s stateside debut.

This was set to become the “EcoCity”. The electronics polymath envisioned a future facility which could accommodate 12,000 people. More exactly, LeEco was looking to house 12,000 of its U.S. employees in a state of the art facility. This would have been specifically developed so as to drive forth its push into the United States market.

Just recently, the company finished a series of acquisitions. It acquired Vizio, a budget TV maker. Also, it acquired an English language movie production company. The Chinese firm revealed grand plans for its future activities. It was looking to develop and build an electric car over a quite short period of time. It was also looking to move its streaming service into a major movie financing segment.

LeEco Denied The Financial Issue Claims And Maintains Its Current Position

However, LeEco seems to have been hit by several financial issues. Media analysts believe that the company may have stretched too far, too soon. As the tech firm denied these claims, new rumors emerged this week.

These state that the company is looking to sell its Silicon Valley facility. According to media sources, this may be sold to the Genzon Group. This Chinese developer is said to have been offered a $260 million offer. The rumored sales price is $10 million higher than the value paid by LeEco last year.

Genzon issued a statement on the matter. Through it, the group confirmed that it is currently negotiating a site acquisition. However, it refrained from giving further details. LeEco, for its part, offered even less information.

The tech company responded to a media request for comments. Still, it stated that it has “nothing to announce at this time”. In the response, it once again pointed out its initial plans for the facility or the “EcoCity”. LeEco did declare that it is looking to identify additional investors and “a development partner”. But as pointed out above, ‘it has nothing to declare’.

Besides looking to sell the Silicon Valley facility, LeEco will also be downsizing its India business. In may also do the same to its Chinese and U.S. workforce, but an official statement on the matter has yet to be released.

Image Source: Wikimedia