Briefing: Leshi says indebted former CEO Jia Yueting still controls company

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乐视网深夜发公告称贾跃亭仍为实控人 集合交易股价再度封于涨—Tencent News

What happened: In response to reports that the founder and chairman of real estate developer Sunac, Sun Hongbin, might “take over” troubled tech company Leshi Internet, the company responded Tuesday night that former CEO Jia Yueting is still its biggest shareholder. Sunac’s stake in Leshi, bought last January via proxy company Tianjin Jiarui Huixi, is stable at 8.56%. The video-streaming company added that it hadn’t received news of Sun Hongbin or related parties planning to buy any more assets. On Tuesday, Leshi’s shares rose just over 10% from the previous day of trading as speculation swirled about a possible Sunac takeover.

Why it’s important: Heavily indebted Leshi, or Le.com, has been in hot water since late 2016, even facing a potential delisting from the Shenzhen Stock Exchange due to negative assets this year. In January 2018, the company stated, Jia Yueting and parent company LeEco owed it a combined RMB 7.5 billion. After Sunac invested in Leshi last January, Sun Hongbin stepped in as chairman the following July but resigned just eight months later. Recent speculation over Sun/Sunac taking over again had commentators concluding that it might be the best possible outcome for Leshi. For now, though, it appears to be just rumor.