LeTV's founder steps down as CEO
- Author: Anthony Vega May 23, 2017,
May 23, 2017, 11:14
Jia, who is continuing as chairman of Leshi and remains the CEO of the bigger LeEco group, said he will "focus on the governance, strategic planning and core product innovation" of LeEco's listed units.
LeEco recently raised nearly $2.2 billion from new investors including Tianjin Jiarui Huixin Corporate Management Company and Sunac China Holdings, but another major backer chose to cut its losses.
Jia Yueting, chairman and CEO of China-based LeEco, has stepped down as CEO of the company but will retain his position as chairman, according to a recent stock exchange filing.
Last month, LeEco not only abandoned its plans to acquire USA -based TV maker Vizio, but also nixed its video service EcoPass.
The board has approved Liang Jun, who once worked at Lenovo Group Ltd and joined Leshi as an executive in 2012, to replace Jia as CEO. The activist fund was more concerned with Jia's expansion into electric cars than his handling of the LeShi streaming service.
Fok said that Jia's departure from the chief executive post is a signal that shareholders lack confidence in him, and want to give another executive who has a different plan of action a chance to lead the company.
The reshuffle will allow Jia Yueting to focus on the company's strategy and vision, according to the disclosure, while Yang Lijie ostensibly resigned because of personal reasons.
This only one of a series of struggles that the company is facing now.
He said to local media that the company's electric vehicle unit is going to launch Series A financing in the near future and the round is expected to be finalized in 2017. China Bridge is LeEco's second-largest investor, with about $2bn committed to the company.
A clear distinction with two different chief executives running the listed and unlisted businesses could boost confidence in the long term, according to Zhang.
"They will focus more on China".
The company has been trying to expand its package offerings of TVs, smartphones and content, but concerns over management have grown following Taiwanese media reports of payment delays to smartphone parts suppliers.
Trading in Leshi shares listed in Shenzhen have been suspended since mid-April. The previous year it made a 70 million yuan profit.