The latest version of the reality-based "Commercial Battle Play" featuring Le Tour as its leading character has been released. On the evening of January 4, Cooler announced that it had learned from Leview Mobile HK Limited that the latter had sold approximately 897 million shares to Vriage Ventures, representing 17.83% of the company's issued share capital. The cash consideration was set at HK$0.9 per share, totaling approximately HK$808 million (around RMB 670 million).
After this transaction, Leview Mobile HK Limited’s stake dropped from roughly 1.449 billion shares to about 551 million shares, reducing their ownership percentage from 28.78% to 10.95%. This shift marked the end of LeTV’s position as Coolpad’s largest shareholder. In June 2015, LeTV had initially acquired a 17% stake in Coolpad for 2.18 billion yuan, later increasing its holdings to 28.9% by investing an additional HK$1.047 billion (about 900 million yuan), becoming the major shareholder. However, due to financial difficulties, LeTV is now selling its shares at a loss.
Jia Yueting, the founder of LeTV, previously responded to a notice from the Beijing Securities Regulatory Bureau regarding his return to China to fulfill responsibilities. He admitted that LeTV had overextended itself across multiple industries, and its management capabilities failed to keep pace, leading to operational deterioration. Jia expressed regret for the negative consequences and acknowledged that more than 10,000 employees were laid off due to asset freezes and business slowdowns. At that time, the only option was to sell assets to repay debts.
Despite ongoing efforts to resolve debt issues, LeTV, which he built, is seen as a casualty of its own brand system collapse, even affecting competitors. Liu Rui, a former mid-level executive at LeTV, who left the company during the crisis, still believes the core business model wasn't inherently flawed. He argued that if not for strategic missteps in mobile phones and automotive sectors, LeTV’s innovative approach could have succeeded.
LeTV’s user data analysis allowed them to tag users based on viewing habits, enabling targeted advertising. While Netflix, often compared to LeTV, has a much larger user tag database, LeTV’s data-driven strategy was ahead of its time. Liu Rui felt that LeTV’s ecosystem was integral to its success, and without support from other business units, rapid growth would have been difficult.
Even after leaving, Liu Rui maintains a positive view of LeTV, believing its decline was due to broader market challenges rather than internal failure. He remains optimistic about the future of the TV business under new leadership.
However, the market has been unforgiving. LeTV’s market share has plummeted by two-thirds compared to the same period last year. Data shows a significant drop in online sales, with LeTV Super TV sales falling by 55.5% year-on-year. Despite past success, supply chain issues and loss of negotiation power have hurt the business. Users are shifting to other brands due to concerns over production and after-sales support.
LeTV’s partnership with Gome and other key suppliers has largely ended. Even Foxconn and Compal, long-time partners, have withdrawn. Meanwhile, competitors like Xiaomi and Sharp have gained market share, benefiting from LeTV’s struggles. Storm TV, another Internet TV brand, saw a 80% increase in sales in 2017, while Xiaomi dominated online sales during the Double 11 event.
Sharp, a traditional TV brand, has also benefited from supply chain optimizations led by Foxconn. Its cost-cutting strategies have enabled price reductions, making it more competitive. However, Sharp still faces challenges in meeting consumer demand for personalized products.
Despite these setbacks, LeTV continues to seek opportunities for recovery. It launched a new series of TVs in December and held product tastings in several cities to regain confidence from suppliers and partners. A recent internal letter emphasized a renewed focus on smart home services and family-oriented solutions, though the path to recovery remains uncertain.
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