Chinese property developer Sunac China Holdings has stated that it has invested a total of 15.04 billion yuan ($2.19 billion) in LeEco. It is buying an 8.61% stake in Leshi Internet Information for 6.04 billion yuan ($880 million). In addition it is investing a further 1.05 billion yuan ($153 million – a 15% stake) in LeEco’s film production company, Leshi Pictures, and a 33.5% stake (7.95 billion yuan or $1.16 billion) in Leshi subsidiary Leshi Zhixin, a smart internet TV business.
Sunac said that it will enable the two companies to cooperate in areas such as smart homes. The new round of funds should help LeEco to resolve some of the financial difficulties faced due to rapid growth, which Jia Yueting, its founder and chairman, outlined last year. (LeEco to Cut Payroll by 10% – Vizio Deal in Doubt? and LeEco Cash Flow, Business Plans and Products)
