Just after his assets were frozen, and two months after resigning as CEO, LeEco chairman Jia Yueting has resigned from his position at the financially troubled and publicly traded half of the company. This latest news is almost assuredly connected to LeEco's ongoing financial problems. There is no word yet on how this might affect the privately owned phone manufacturing arm of the company. Read More
LeEco can't seem to catch a break. Last month, its CEO Jia Yueting sent out a memo days after the company's US launch claiming it was over-extended and suffering from "big company disease," which seemed a clear euphemism for incoming job cuts. A month later, and things aren't any better.
The Wall Street Journal is reporting that the publicly-traded arm of LeEco, known as Leshi, had seen its stock tank earlier this week. Reports from Chinese media claim that an 8% drop on Tuesday triggered margin calls by Jia's lenders, meaning he will either be forced to sell some of his Leshi company stock or provide his margin accounts fresh funds. Read More
According to the China-based Global Times, CEO of LeEco Jia Yueting sent a company-wide memo out on Sunday saying the company's rapid global expansion hasn't gone as well as hoped. In the memo, Jia says that "LeEco's growth pace and organizational capabilities" have been a problem, and that a lack of capital and resources resulted in poorer than expected momentum in the company's various businesses.
Jia specifically calls out "non-listed" LeEco, which are the various ventures of Jia organized through a large number of private subsidiaries not a part of the larger LeEco listed on the Shenzen Stock Exchange. Read More