suddenly! LeTV withdraws 670 million yuan from Cool emergency retreat

Following the completion of the deal, Leview Mobile HK Limited’s stake in Coolpad dropped from about 1.449 billion shares—equivalent to 28.78% of the company’s equity—to roughly 551 million shares, or 10.95%. As a result, LeTV is no longer the largest single shareholder of Coolpad, marking a turning point in the company’s history.

This development comes after a series of strategic moves by LeEco, which first invested RMB2.18 billion in June 2015 to acquire an 18% stake in Coolpad, making it the second-largest shareholder. Then, in June 2016, LeTV increased its holdings to 28.9%, becoming the dominant shareholder. At the time, Jia Yueting, the founder of LeEco, joined the board of Coolpad and appointed Liu Jiangfeng, the former CEO of Huawei’s subsidiary Honor, as the company’s new president.

However, the relationship between LeTV and Coolpad took a downturn when Jia Yueting began acquiring more shares, leading to a decline in the company’s stock price. This drop significantly impacted LeTV’s investment, which is now estimated to have exceeded RMB3 billion. The recent sale of 17.83% of Coolpad’s shares for only RMB670 million has resulted in substantial losses for LeTV, raising questions about the long-term viability of their partnership.

The current situation reflects a broader trend in the tech industry, where high-profile investments can quickly turn into financial setbacks. For Coolpad, this shift in ownership may bring new opportunities and strategies, while for LeTV, it serves as a cautionary tale of the risks involved in aggressive market expansion.