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Clay Shirky: LeEco finds that the conglomerate-building strategy is no longer an option

Chinese tech group acknowledges it's growing too fast

Chinese technology group LeEco has been in the spotlight recently, both for its expansion plans and its cash woes. It has launched a new phone in India and is laying off employees. It is investing in Faraday Future and other electric vehicle makers in the U.S. and China, and it is being pursued by Chinese and Taiwanese suppliers for unpaid bills. The Asian Football Confederation has revoked a $100 million broadcast deal over late payments, reassigning Chinese rights on Feb. 28 to another company.

LeEco is also purchasing U.S. television brand Vizio, has invested in Chinese gadget maker Coolpad Group and begun selling phones in the U.S. Meanwhile, Founder and Chief Executive Jia Yueting has slashed his salary to 1 yuan (15 cents) to support cost-cutting measures and apologized after being rebuked by market regulators for remarks about boosting the share price of listed unit Leshi Internet Information & Technology. Jia likened 2016 to "being in ice and fire simultaneously."

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