China tech giant LeEco in talks on $1.4 billion support, starts e-car plant
Cash-strapped Chinese technology conglomerate LeEco is in talks on securing a 10 billion yuan ($1.4 billion) deal with an unnamed strategic investor, its listed unit said.
Cash-strapped Chinese technology conglomerate LeEco is in talks on securing a 10 billion yuan ($1.4 billion) deal with an unnamed strategic investor, its listed unit said.
Leshi Internet Information and Technology said in a filing to the stock exchange late Wednesday that its parent company had signed a framework agreement with the investor and the two sides were still discussing the final details.
It did not disclose the identity of the investor, but the China Business News cited a source familiar with the situation as saying that it was an insurance company.
LeEco has been expanding aggressively in a range of businesses including online entertainment, electric and driverless cars and smartphones, but the firm`s billionare chief executive Jia Yueting warned staff last month that it had grown too fast and was facing cash shortages.
Soon after, the company said it had secured commitments for $600 million to support its automotive unit and LeEco high-tech business.
LeEco also launched a new electric car plant in eastern China`s Zhejiang province on Wednesday, the official China Daily reported.
The newspaper said the first phase of the new factory would cost 11 billion yuan ($1.58 billion) to build and would produce 400,000 e-cars every year.
Following the cash crunch, the firm`s sports broadcasting unit said it would cut 10 percent of its staff and restructure its business.
This week, LeSports still owed as much as $30 million in payments to the Beijing-based Super Sports Media Group, which holds exclusive rights to broadcast English Premier League games in China.
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