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A Chinese tech giant just sealed a multimillion deal to acquire Yahoo's land

Jun 18, 2016, 09:05 IST

Yahoo CEO Marissa Mayer.AP Photo/Lionel Cironneau, File

LeEco, the Chinese electronics maker partnered with electric-car startup Faraday Future, is digging its heels even deeper into the US.

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The Beijing-based company just bought nearly 50 acres of land that belonged to Yahoo. The asphalt is situated near Levi's Stadium in Santa Clara, California.

The acquisition adds 3 million square-feet of space for LeEco's operations, which span smartphones, bicycles, virtual-reality headsets, and, eventually, electric cars.

The added space also creates room for at least 12,000 additional employees.

The Silicon Valley Business Journal reported Friday that LeEco paid $250 million for Yahoo's old property - $106 million more than what Yahoo paid in 2006, according to the publication.

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In April, LeEco opened its first US headquarters in San Jose. The company, led by Chinese billionaire Jia Yueting, is among a handful of international tech conglomerates attempting to challenge Tesla in the electric-car space in the US.

LeEco is working with Southern California-based Faraday Future, and has developed its own self-driving electric car. One of LeEco's next-door neighbors in San Jose is NextEV, a venture-backed startup also aspiring to build an electric car from the ground up.

The land sale could be a boon for Yahoo, which is in the process of selling its core business - comprised of its internet assets, real-estate properties, patents, and some licensing deals.

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