Published: Mon, March 20, 2017
Electronics | By Jesus Weaver

LeEco is reportedly selling the site for its Silicon Valley HQ

LeEco is reportedly selling the site for its Silicon Valley HQ

According to Reuters, the Chinese hardware maker has sold its Silicone Valley property to the Genzon Group, which purchased it for $260 million.

It's no secret that LeEco, a Chinese technology and entertainment company, spent more than it should have in its expansion efforts and is having all kinds of trouble as a result.

LeEco bought the property from Yahoo in June at about the same time it opened its first United States headquarters in San Jose, California.

The site, which LeEco originally purchased to build an "EcoCity" capable of housing 12,000 employees, was meant to become the company's USA headquarters and an "open campus" that would replace its current 800,000 square-feet office in San Jose, according to the company. Genzon confirmed that the site's sale is now under negotiation but didn't mention anything more than that. In November, chief executive Jia Yueting wrote in a letter to staff that the firm was rapidly running out of cash due to a "weak capital structure", and partially blamed the crisis on expensive ventures such as its electric vehicle unit.

A month before that letter, during the official U.S. launch of LeEco at San Francisco's Palace of Fine Arts, Jia had declared plans of building headquarters in North America at the site in Silicon Valley.

They also declined to elaborate on their interest in buying the property, but their website cleared out that they were going to erect an office building in Silicon Valley in the Burlingame Point, their first office in the United States'. "LeEco has been working to identify additional investors as well as a development partner but we have nothing to announce at this time", LeEco told TechCrunch in response to the Reuters report.

Back in October of previous year, LeEco officially started its expansion into the United States. It is company policy not to quote numbers upon request as "headcount changes routinely due to additions and/or departures", LeEco said.

In initially buying the 49-acre property from Yahoo, Inc, LeEco was looking to establish a strong foothold in the market its LeSee and to support its Faraday Future electric luxury carmaker subsidiary, along with expanding its tech industry presence in Silicon Valley. However, that was before LeEco received a capital injection of $2.2 billion from property development group Sunac China Holdings.

LeEco's flagship unit, Leshi Internet Information and Technology Corp Beijing, saw a plunging in their shares as well of about 25% over the period of five months.

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