New reports are making rounds that the popular electronic maker LeEco is cancelling its earlier confirmation of acquiring the TV manufacturer Vizio for $2 Billion. The decision was made final and both parties made their official announcement last Monday. With all this revelation, consumers would want to hear the exact reason as to why the decision was made.

According to XDA, the cancellation of the deal was done in a good manner. Sources determined the reason of the said action and cited "regulatory headwind" as the primary motive. The supposed acquisition met certain obstacles from China's part because of the outflow in the body on accounts.

It was remembered that LeEco is planning to use the said TV manufacturer, Vizio as a permit to enter and expand in North America. However, it should be approved by the Chinese regulators as per Los Angeles Times. Yet, Vizio is still looking forward to LeEco helping them expand their influence in the Chinese market.

Moreover, both companies also confirmed that they would still work together in some aspects, despite the fact that the $2 billion deal was cancelled. They also revealed that the decision made won't affect any of the future collaborations of LeEco and Vizio. News reported that the two companies are looking forward to working with each other for future projects.

In a statement given online, it stated:

"Under the new agreement, LeEco and VIZIO will continue to explore opportunities to incorporate the Le app and content within the VIZIO connected CE platform, and engage in a collaborative partnership to leverage LeEco's EUI (Ecosystem User Interface) platform, along with the brand's exclusive content and distribution channels, to bring VIZIO products to the China market."

As of today, LeEco and Vizio are both looking for further options in terms of the alternatives they can take on.