Slashdot Mirror
Reality Bytes: A Highflying Tech Entrepreneur Crashes Back To Earth (wsj.com)
An anonymous reader shares a WSJ article: Entrepreneur Jia Yueting likes to say that Apple is outdated, China's big technology companies are innovation-killing monopolies and his company, LeEco, is the real industry disrupter. That swagger served Mr. Jia in building an empire that sprawled across seven industries, from online video content to smartphones to electric cars. By having the ambition to take on Apple, Tesla and Netflix all at once, Mr. Jia seemed to embody the boundless promise of the huge China market. And investors responded favorably. Deal makers like HNA Capital and Legend Holdings bought in, as did the city government of tech hub Shenzhen, as well as movie director Zhang Yimou and other celebrities. British sports car maker Aston Martin joined up to develop electric vehicles. The U.S. state of Nevada promised $200 million in incentives for Mr. Jia's electric car venture, Faraday Futures, to build a $1 billion plant there. And LeEco unveiled a $2 billion deal to buy U.S. TV-maker Vizio. Now, most of those deals are dead or struggling and Mr. Jia's dreams are fading away due to a cash crunch and worried creditors (could be paywalled). On Thursday he resigned as chairman of a listed unit of LeEco, Leshi Internet Information & Technology, though he will remain the chairman of the holding company. That move comes after a Shanghai court last week -- at the behest of China Merchants Bank -- froze $181 million worth of his assets and $2 billion in shares over a missed interest payment.
He did not "crash back to Earth". We're not talking about him dying in a parachute/plane/spaceship crash here. Stop with the stupid clickbait headlines and american english slang.
Thanks for the post, I'll check it out
"Japan is taking over!" == "The rise of China!"
In both scenarios the domestic companies involved just smiled and took the money and waited for the leveraged positions to erode out from under their corporate overlords.
I thought Britain no longer has car makers, maybe AM is a niche (I almost think AM stayed in business per the famous spy movies). Can't read the article but there was a time when British had several car companies including the legendary Rolls Royce. I think of a documentary that discussed what happened to all these companies and some reasons why. Perhaps similar reasons why Jia Yueting bit the dust (no, he didn't chew on dirt. Only expression he has significantly less earnings than before).
mfwright@batnet.com
It was pretty obvious that the company bit off way more than it could chew. They did make pretty nice phones though.
Curious if the submitter works with WSJ (Wall Street Journal). Not much point in sending a story that requires a subscription unless they want to increase subscribership. It would be appreciated if these types of stories were not submitted as it's irritating to those trying to read it.
"Imagination is more important than knowledge" - Einstein
Meh
OK, you earned an extra week of reprieve.
Everybody already knows you can't trust chinks. And the morons at Aston and Vizio are getting that lesson first hand.
That's how that went down. 'Missed an interest payment', indeed!
Oh, but the Chinese government couldn't possibly be corrupt! You must be mistaken, AC!
Lot of Unicorn beating today. ''Tis the season! Earnings are just around the corner!
Everyone in China breaks the rules, a, certain number get caught.
What a surprise. China is garbage and filled with corrupt scum.
Vizio is not a US TV maker. It is a US branding company that buys cheap Chinese TVs (albeit exclusive models) from China Shenzhen TV Co. Ltd and sells them in the US at incredible margins.
Vizio does not make anything except money.
What exactly is clickbait? His company is imploding despite being overhyped and the next Jesus corporation.
Markets change and risks that were survived a decade ago, become fatal now. Alas, many a business has assumed they could continue playing the same game better and longer. This is mentality is encouraged by the finance industry itself: Want to buy a $100,000 business, get a $70,000 loan; want to buy a $10m business, get a $10m loan. The reality is, if a business doesn't diversify or hedge it investments, it will go bust sooner or later .
"american english slang"
Obviously you've never heard of the BRITISH sci-fi flick The Man Who Fell To Earth which although written by American Walter Tevis, was adapted into a film by Nicolas Roeg & Paul Mayersberg and the title role was played by David Bowie.
Guess which country all three grew up in. Hint: NOT the USofA
Pain is merely failure leaving the body
Damn, whatever happened to "working with your lender". Even mortgage lenders are more flexible than this. Probably not getting the full story, and can't read TFA
Morgan has been independent since it was founded in 1909.
This sig left unintentionally blank.
Isn't it up to the INS to decide?
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
I saw this coming a year ago or so when faraday futures was trolling for a factory location in california. sounded like a scam.