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LeEco bids for Yahoo's prime real estate

By Fan Feifei | China Daily Europe | Updated: 2016-05-08 14:15

Tech giant Yahoo Inc has agreed to sell 20 hectares of undeveloped land near Silicon Valley to Chinese internet company LeEco Holdings Ltd, the Silicon Valley Business Journal reported.

However, the deal has not yet been closed, it says.

The purchase would indicate a rapid expansion for LeEco, which has interests in smartphones, televisions, mountain bikes and electric vehicles, as well as the entertainment and sports sectors.

LeEco bids for Yahoo's prime real estate

One of LeEco's new energy cars on display at the recent Beijing auto show. LeEco will establish its North American headquarters in San Jose. Dong Dalu / For China Daily

Yahoo bought the property in California for $106 million in 2006, when the company's revenue was still growing. The site can accommodate an estimated 12,000 employees, the report says.

The company has approval to build up to 279,000 square meters of office or research and development space on the site. However, construction never started.

In addition to LeEco, internet giants such as Google Inc and Apple Inc are also said to be bidding for the land.

LeEco, which declined to comment when contacted by China Daily, has stepped up its expansion in North America in recent years.

On April 28, it announced a new North American headquarters covering 7,400 square meters in San Jose that can accommodate up to 800 employees. The building is only 4.8 km from the site it may purchase from Yahoo.

The base will be the future home of LeEco's self-driving research center, the LeFuture AI Institute, which will be set up in partnership with Faraday Future, an e-car company in California.

Moreover, top talent in R&D, products sales and management from Apple, Google and Samsung Electronics Co Ltd have also been recruited to LeEco's US office.

Pang Yiming, a senior analyst at internet consultancy Analysys International in Beijing, says: "Buying a massive piece of land in Silicon Valley, where many internet tech giants are located and which is known for its unique talent, shows LeEco's dedication to keep step with world-class players."

Establishing a headquarters in Silicon Valley could help LeEco learn the most advanced technology and attract top talent, as well as help it to expand in the North American market, Pang adds.

Industry sources say selling the property could meet some of Yahoo's cash demands and reduce its operating costs, which also reflects the decline of the traditional internet conglomerate and the rise of new forces.

Ma Si contributed to this story.

fanfeifei@chinadaily.com.cn

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