Mon, Apr 17, 2017 - Page 16 News List

Chinese tech giant LeEco loses finance chief, source says

Bloomberg

LeEco Inc’s (樂視) global head of corporate finance is leaving, according to a person familiar with the matter, the latest sign of retrenchment by the Chinese technology giant.

Winston Cheng (鄭孝明), who joined LeEco in 2015, is to be president of international operations at Chinese e-commerce company JD.com Inc (京東), leading new business initiatives including investments and mergers and acquisitions, the person said.

LeEco declined to comment. JD.com did not respond to a request for comment on Friday.

Cheng previously held managing director roles at Bank of America Merrill Lynch and Goldman Sachs Group Inc. Merrill Lynch was a lead underwriter for JD.com when the firm went public in 2014, a deal Cheng worked on.

He also advised JD.com that same year when Tencent Holdings Ltd (騰訊) bought a 15 percent stake. JD.com has become Alibaba Group Holding Ltd’s (阿里巴巴) biggest competitor in China’s online shopping sector.

LeEco’s ambitious international expansion plans have suffered from a cash squeeze and other roadblocks. Cheng played a key role in LeEco’s proposed acquisition of TV maker Vizio Inc for US$2 billion, a deal that the company said fell apart because of regulatory hurdles.

LeEco’s US plans have also been set back by lackluster sales, job cuts, and delayed payroll to US employees.

LeEco lured executives from global technology giants and banks to run its operations.

In the past year, there have been several high-profile executive departures. Todd Pendleton, a marketing executive, and Shawn Williams, a senior vice president from Samsung Electronics Co, left LeEco after about a year, according to several people familiar with the matter.

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