LeEco is reportedly selling the site for its Silicon Valley HQ

Yolanda Curtis
March 20, 2017

Last year, the company officially entered the U.S. market and purchased a 49-acre property in Silicon Valley from Yahoo. The plot was supposed to house an EcoCity with 12,000 employees.

LeEco may not be around in the US for much longer - the company's big attempt to make a name for itself here seems to have failed.

We already knew that LeEco is experiencing a cash crunch, as its CEO admitted this in a letter to staff back in November.

The report claims that LeEco is trying to sell the site to Chinese developer Genzon Group for $260 million, a $10 million increase from what LeEco paid for it.

Genzon did confirm that they were in talks for buying the site, but there were no comments on the size of the deal or whether there was a team up with any partners as discussions were still going on.

LeEco, however, denied the notion and said, "India is one of the most strategic markets for LeEco and hence there isn't any exit plan". The company has at least halved the workforce in Silicon Valley alone. In fact, a month after United States launch LeEco CEO openly admitted in a letter to staff that the company is struggling to pay off its pile of debts to suppliers and business partners due to a severe cash crunch. In October, Jia said the company had more than 500 employees working in the US. Reuters has also since reported that the company has significantly reduced the number of us employees that it has, and suggests that LeEco has halved its Silicon Valley workforce. As Jia pointed out, 500 USA employees, but LeEco was earlier cited by a Chinese media saying that they had 1000 U.S. employees previous year, which included their super vehicle research personnel. Headcount reduction have also been seen in LeEco's various business units in its home country of China, with its India workforce also said to have been reduced by nearly 80 percent.

After being plagued by several months of financial woes, LeEco in January landed a 16.8 billion yuan (US$2.24 billion) round of investment from Chinese property developer Sunac China Holdings, which injected fresh funds into LeEco's entertainment and hardware businesses. That's a very capital-intensive business to be in, as analysts point out, and which LeEco continues to discover.

Recently, the luxury electric auto startup said it would have to scale back the size and production volume of its plant that it still has to build in North Las Vegas, Nev.

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