Making business deals is a common tactic that companies use to help grow their operations. Some companies may try to create joint ventures with other companies that could lead to business benefits. Unfortunately, these business relationships do not always turn out as well as hoped.
Texas readers may be interested in a joint venture dispute between Vizio and LeEco. The American television manufacturer had made a deal that the technology company would purchase Vizio. However, the deal did not go through due to a block put on the deal by the Chinese government. The two companies attempted another venture in which LeEco would sell Vizio products overseas and Vizio would offer LeEco apps on its televisions. Reportedly, that deal also fell through.
The two companies apparently had a deal that involved a $100 million “breakup fee,” presumably if they could not work together. Vizio claims that LeEco did not pay $60 million of that fee. The TV manufacturer also believes that LeEco committed fraud and had not intended to move forward with the joint venture. The dispute recently came to a settlement, but the details of the agreement were not given in the report.
Joint ventures are not easy business relationships to make as issues could come about, as this case shows. When disputes do arise between businesses, a great deal can be at stake. Texas business owners contending with this type of problem may want to determine their best options for effectively addressing their conflicts. Coming to the best resolution possible may help them avoid future damages.