LeTV slumps as founder announces share sale

The company is in need of capital to finance expansion and diversify its range of products

LeTV Holdings Co Ltd founder and CEO Jia Yueting's plan of selling company shares worth more than 10 billion yuan ($1.61 billion) triggered a panic among investors that led to a price dip on the board of listed startups on Tuesday.

The cash-hungry LeTV is in urgent need of capital on multiple fronts, including film making, smartphones, electric car building and sports broadcasting. Jia will lend the cash-outs to LeTV interest-free for five years to ease the liquidity problem the company is facing.