AFP, Shanghai :
Fast-growing Chinese tech firm LeEco, which earlier this year purchased US television maker Vizio, has suspended trading of its listed arm’s shares amid fears that a cash crunch had caught up with the company.
LeEco suspended shares of listed Leshi Internet Information & Technology Wednesday after the stock plunged 7.85 percent the previous day.
Originally a video-streaming provider, LeEco has expanded rapidly with investments in sectors as wide-ranging as self-driving cars, sports broadcasting rights, smartphones, film production, and television manufacturing. CEO Jia Yueting, who has previously dismissed US technology giant Apple as no longer innovative, admitted in a letter to employees that LeEco had “over-extended,” Bloomberg News reported earlier this week.
“We blindly sped ahead, and our cash demand ballooned,” Bloomberg quoted the letter saying.
Fast-growing Chinese tech firm LeEco, which earlier this year purchased US television maker Vizio, has suspended trading of its listed arm’s shares amid fears that a cash crunch had caught up with the company.
LeEco suspended shares of listed Leshi Internet Information & Technology Wednesday after the stock plunged 7.85 percent the previous day.
Originally a video-streaming provider, LeEco has expanded rapidly with investments in sectors as wide-ranging as self-driving cars, sports broadcasting rights, smartphones, film production, and television manufacturing. CEO Jia Yueting, who has previously dismissed US technology giant Apple as no longer innovative, admitted in a letter to employees that LeEco had “over-extended,” Bloomberg News reported earlier this week.
“We blindly sped ahead, and our cash demand ballooned,” Bloomberg quoted the letter saying.
