Walmart Will Buy Vizio for $2.3B

Walmart Will Buy Vizio for $2.3B

News by Roberto Orosa
Published: February 20, 2024

Walmart has unveiled its strategic move to acquireleading TV manufacturer Vizio in a deal valued at approximately $2.3 billion.

This acquisition marks Walmart's bold step towards expanding its advertising business and tapping into new avenues of customer engagement.

In a press release, Walmart expressed enthusiasm about the potential of integrating Vizio and its SmartCast Operating System (OS) into its ecosystem.

Vizio's SmartCast OS uses an IQ processor and dual-band wi-fi (Source: Vizio).

The retail giant believes that this union will enable it to revolutionize in-home entertainment and forge deeper connections with customers through innovative media experiences.

"It would also create new opportunities to help advertisers connect with customers, empowering brands with differentiated and compelling opportunities to engage at scale and to realize greater impact from their advertising spend with Walmart," the company said in an official statement.

Seth Dallaire, executive vice president and chief revenue officer of Walmart U.S., expressed excitement over the acquisition.

“We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling," he shared.

A sample of Vizio's TV Guide showing some of the networks it is working with (Source: Vizio).

Furthermore, Dallaire emphasizes the benefits of uniting the business with the company's media business Walmart Connect, which helps brands "create meaningful connections with the millions of customers who shop with us each week."

"We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment," Dallaire added.

News that the retail company would buy out Vizio broke out last week, with sources revealing that the potential deal would bolster the retail giant's advertising business.

Vizio's Potential

While Vizio's SmartCast OS underscores its prominence in the smart TV landscape, boasting over 18 million active accounts, it is also knwon for its Vizio Platform Plus business.

It has cultivated over 500 direct advertiser partnerships, a testament to its market influence and appeal.

Walmart acknowledges the potential of Vizio's market reach and intends to leverage it to enhance its competitive edge in the realm of affordable smart TVs.

Vizio's ad solutions as posted on its website (Source: Vizio)

While Walmart already offers its Onn brand of TVs, the acquisition of Vizio will further solidify its position in the market, enabling it to better compete with affordable smart TV options offered by competitors like Amazon.

The proposed acquisition is subject to regulatory approval and includes a provision for termination within a 45-day period should Vizio receive a superior offer. This is to ensure the best possible outcome for both parties involved.

Vizio CEO William Wang expressed optimism about the acquisition, highlighting the alignment of Walmart's approach with Vizio's mission and vision. 

"We believe this is the ideal next chapter in Vizio’s history. By bringing our capabilities and resources together, we’ll drive innovation and create even more value for our customers," Wang said.

The deal comes at a pivotal moment for Vizio, following the recent overhaul of its TV software aimed at enhancing user experience and competitiveness in the market.

As Vizio continues to navigate the competitive landscape against rivals like Hisense, TCL and budget-priced Roku TVs, the strategic partnership with Walmart positions it for sustained growth and innovation.

Editing by Katherine 'Makkie' Maclang

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