Summary of The Controversial LeEco

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Rating

8

Qualities

  • Innovative
  • Overview
  • Background

Recommendation

Chinese online retail giant LeEco has ventured into a slew of businesses, including smartphones, smart TVs, video streaming and electric cars. However, investors have been critical of the company’s strategy – especially after founder and CEO Jia Yueting admitted in November 2016 that overexpansion had led to a financial squeeze. Now that an investor’s cash injection has revived the company, Jia insists on sticking to his strategy and remains optimistic about the future. Alas, analysts and investors aren’t so sure. getAbstract recommends this profile of the struggling giant to investors and financial analysts.

About the Authors

Li Yating, Ma Jiying and Li Xiaoxiong write for the Chinese business magazine China Entrepreneur Magazine, which profiles business leaders, investigates companies, and also reports on business trends and management insights of Chinese entrepreneurs.

 

Summary

After a strategic investor injected a large sum of cash estimated at more than 15 billion yuan [$2.4 billion] into struggling China-based giant online retailer LeEco, its founder and CEO Jia Yueting announced that the most difficult times had passed and that the company would regain its former strength within a few months.

LeEco comprises the listed company, various nonlisted entities and an auto business. The listed company offers video streaming, TV and cloud services and represents...