LeEco Delays Purchase of Film Unit, Defends Spending Binge

(Beijing) — Entertainment firm LeEco said it will probably miss a year-end target for closing its $1.4 billion acquisition of Le Vision Pictures as it defended its recent multibillion-dollar investment binge that has raised concerns about a looming cash crunch.

LeEco's shares have dropped as much as 15% over the last week as concerns mount that it may be facing financial difficulties after an 86 billion yuan ($12.7 billion) spending spree that has taken it into a wide range of new areas, including smartphones and new-energy cars.