Brief: Embattled LeEco boss steps down from key roles in the group

Montage by Tech in Asia. Photo credit: Faraday Future.

The news:

• Troubled LeEco boss Jia Yueting stepped down from almost all his roles at the Chinese tech group. Jia had previously resigned from his position as CEO of Leshi Internet but had stayed on as chairman.
• Now Jia has relinquished that role along with several others in the embattled conglomerate and will assume the role of global chairman in LeEco’s LeSee electric car business.
• The move comes as US$182 million of Jia’s assets as well as shares in Leshi Internet are frozen by court orders due to outstanding debts.

Why it matters:

• The group is in heavy debt, having burned through US$7 billion in the past six years. Its value took a US$2 billion dive late last year, prompting Jia to sell off large chunks of his businesses to raise US$2.2 billion in January.
• The LeEco group built itself up as a global tech company out of China, set to challenge US giants like Google and Amazon. It might have tried to do a bit too much, too fast.
• An ambitious US expansion did not pan out for the group, with several critical mistakes forcing a retreat. Jia is still the largest shareholders in US electric car company Faraday Future.

Source: The New York Times.

See: The billionaire who very nearly bankrupted a Chinese tech giant