Chinese Giant LeEco seems to be emptying its liquid resources in order to expand itself in other nations and other fields as well says company’s Chairman and Co- Founder, Jia Yueting. He told the company employees in a letter that the firm is not having enough of the monetary resources to fulfill company’s future goals.
It’s been almost an year since LeEco expanded its business here in India. We know the firm for mobile phones and now for Smart TVs too but what majority of us don’t know is that rather than just making Smartphones, LeEco is also in a lot of businesses ranging from sports, media, cars, smartphones, TV and ending at online content streaming for now.
But what’s hitting the firm right now is the way it is moving forward aggressively towards stepping in other fields of action costing the firm with lesser or almost NIL monetary assets for company’s key products that is online streaming content further stretched to Smartphones. What all I have stated is said by company’s Chairman and Co-Founder, Jia Yueting in his words himself, he wrote a letter to his employees in which it was stated that company is running out of assets which are costing them a loss on fulfilling their lofty ambitions.
Recently, LeEco was in news for its recent acquisition of Vizio in around 2 Billion US Dollars and its official launch in the US market. According to Yueting this might look good on paper but these rapid growths are ultimately harmful for the firm itself as this leaves the firm with very less assets to perform even its key roles.
According to Bloomberg’s report, the moment the news came out of Yueting’s letter to his employees, the company shares of Leishi Internet Information and Technology Corporation and Coolpad Group Ltd. both fell drastically imposing another problem for the firm.
As per Yueting, the firm needs to focus on “existing businesses” for now rather than building new one and he’s right too, LeEco is known mainly for its online content (The firm’s main business is online content marketing only) and if they fail in that only then what goodwill would be left of theirs in the market?