Wang started Vizio fourteen years ago and rapidly built it into one of the largest TV companies by selling flat panel displays at a lower price than the competition. Now LeEco's acquisition should help it gain a foothold in the US market, as it also develops products in other areas like electric vehicles and smartphones.

LeEco announced plans to invest heavily in R&D for the division, while Vizio CTO Matt McRae promised to continue the company's strategy of delivering connected, multiscreen technology at affordable prices. The combination brings together the largest TV brand in China with the second largest one in the US, and it should be interesting to see what that combined might can do. The two expect the deal to close in the fourth quarter of this year.