April 2017
12:08 AM IST
News Headlines
Home   | Main News   | International  | National   | Business   | Sports   | Special News   | Feature News   | Entertainment   | About Deepika 
LeEco to sell Silicon Valley site amid cash crunch: report
(Hong Kong, march,17,2017):Chinese technology conglomerate LeEco is looking to sell a 49acre US Silicon Valley property less than a year after buying it from Yahoo Inc., sources said, in what is the latest effort by the firm to ride out a cash crunch.

LeEco, one of China’s most ambitious companies that grew from a Netflixlike video website to a business empire spanning consumer electronics to cars within 13 years, is struggling to support its goals that include beating Elon Musk’s Tesla Motors in premium electric vehicle making.

LeEco’s billionaire founder and chief executive officer Jia Yueting admitted in a letter to the staff in November that the firm was facing a “big company disease” and battling a cash crunch after expanding at an unprecedented rate.

But less than a month prior to the letter, amid much fanfare at LeEco’s official U.S. launch at the Palace of Fine Arts in San Francisco, Jia had outlined plans to build its North America headquarters at the Silicon Valley site.

“This property will be an EcoCity that houses 12,000 employees,” Jia said at the time.

Now cashstrapped and struggling to repay a pile of debts to suppliers and business partners, LeEco plans to sell the U.S. site to littleknown Chinese developer Genzon Group for $260 million, $10 million more than what the firm paid for it in June, said a source with direct knowledge of the deal who did not want to be named due to rules on talking to media.

Genzon confirmed it was in talks to buy the site, but declined to comment on the deal size or whether it was teaming up with any partners as the discussions were still ongoing.

Genzon also declined to elaborate on why it was interested in the property, but according to its website, the Shenzhenbased firm founded in 2003 is erecting a 140,000square metre office building in Silicon Valley in a project called Burlingame Point—its first in the US.

LeEco, in an emailed response to Reuters on the sale talks, said it was “working on securing a development partner” but that it was unable to share any further details.

“We are not yet ready to share plans for the land as we are still in the initial planning phase.”

According to sources in and outside the company, workforce has been downsized across LeEco US, with some estimating numbers had at least halved in its current Silicon Valley office alone. Jia, in October, said LeEco US employs “more than 500”.

LeEco was cited by Chinese media as saying in May last year that the company had 1,000 employees in the United States, including research personnel for its “super car”.

The firm on Friday declined to comment on these reports or its current employee number. It is company policy not to quote numbers upon request as “headcount changes routinely due to additions and/or departures”, LeEco said.

LeEco has seen headcount reduction in various units of its business in China since its financial problems deepened. The company said earlier this month that it had also cut almost 80% of its workforce in India.

Jia in January said LeEco’s financing problems would be solved in three to four months, before the firm got a muchneeded capital injection of $2.2 billion from property developer Sunac China Holdings.

But the Sunac investment was for LeEco’s entertainment units and not its carmaking business, which analysts say is very expensive to sustain.

LeEco is developing luxury electric vehicles with Faraday Future in the United States, a startup Jia funds and controls.

However, the outlook remains unclear after Faraday said it was scaling back production plan at a factory it has yet to build in Nevada.

LIC to infuse Rs 407 cr in IDBI; hike stake to 14.25%
Hero Cycles eyes setting up Rs 400 cr project
Consumers get a free hand on hotel service charge payout
Mobile subscriber base reaches 895.25 mn in March
India may bounce back from demonetisation: IMF
OPEC oil cuts could continue, Saudi minister suggests
Activa overtakes bikes, revives scooter raj in India
China GDP growth surpasses expectations, bolstering global outlook
Annoyed SC orders auction of Sahara's pricey Aamby Valley property
Amazon gets RBI nod for e-wallet in India
Infosys to return Rs 13,000 crore to shareholders
Mobile towers 'completely safe', insists COAI
Two Fortis Healthcare directors resign
Flipkart acquires eBay’s India biz to fight Amazon
Objectives of demonetisation met to large extent: Sitharaman
IndiGo operates 900 flights on a single day
NIIT CEO Rahul Patwardhan quits
No estimates of undeposited black money in old notes: Govt.
Reliance Jio withdraws Jio Summer Surprise offer on TRAI advice
India, UK vow to fight tax evasion, up fin service synergy
Sushmita Sen opens up on her dream role
 Bollywood actress Sushmita Sen today said having explored comedy, drama and emotions, she now wants to play the role of a mature woman in a film.  
"Frustrated netizens criticize senior film makers like me"
Renji Panicker delighted over the success of 'Raees'
Jackie unbeatable, never tired: Sonu Sood
JEE Main 2017 over, “Cutoff expected to be 105”, say experts
 JEE Main 2017 Cutoff is expected to be around 105, claim experts. The exam concluded on Sunday with completion of online mode.
Not so 'NEET' after all
Mundrothuruthu: A Disappearing Fertile Island
Pregnant women constrained to give birth on public road sides
Cool-headed duck becomes latest Internet sensation !
 Tigers are fierce animals. But, a tiger of Australia's Symbio Wildlife Park had to give up all his efforts to get hold of a duck.
Kalolsavam 2017: Manju steals the limelight
A sparkling gem of an artist
7 steps to beat childhood obesity
Rashtra Deepika LTD
Copyright @ 2017 , Rashtra Deepika Ltd.