Walmart, the retail giant, has announced its plans to acquire VIZIO, a leading manufacturer of smart TVs and home entertainment devices, for a staggering $2.3 billion. This acquisition marks Walmart’s entry into the in-home entertainment and media experiences market, allowing the company to connect with its customers in new and innovative ways.
The acquisition of VIZIO will not only provide Walmart with access to cutting-edge technology but also enable the retail giant to offer its customers immersive entertainment experiences at attractive price points. With VIZIO’s SmartCast Operating System (OS), Walmart will be able to redefine the intersection of retail and entertainment, creating a seamless and integrated platform for its customers.
One of the key advantages of this acquisition is the opportunity for Walmart to enhance its advertising capabilities. By combining VIZIO’s advertising solutions business with Walmart’s reach and capabilities, the company will be able to offer brands differentiated and compelling opportunities to engage with customers on a larger scale. This move comes at a time when connected TV platforms are experiencing significant growth, making it an ideal opportunity for Walmart to expand its media business, Walmart Connect.
Seth Dallaire, Executive Vice President and Chief Revenue Officer of Walmart U.S., expressed his excitement about the acquisition, stating, “There is a lot to be excited about with this 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.”
VIZIO, founded in 2002, has been dedicated to delivering immersive entertainment and innovative connected home devices to consumers at great value. Over the years, VIZIO has built a strong customer base with its device ecosystem and Smart TV operating system, SmartCast. With over 18 million active accounts and a 400 percent growth since 2018, VIZIO has established itself as a leader in the industry.
William Wang, CEO of VIZIO, expressed his enthusiasm for the acquisition, stating, “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.”
Walmart Connect, the retailer’s closed-loop omnichannel media business, has seen significant growth, with a 30 percent increase in fiscal year 2024. This business offers attractive opportunities for Walmart suppliers and sellers to reach their desired customers across various channels. With the addition of VIZIO’s advertising business, Walmart Connect will be able to provide even more innovative solutions for advertisers of all sizes.
The transaction is subject to regulatory clearance and other closing conditions specified in the merger agreement. VIZIO’s Board of Directors has unanimously approved the transaction, and VIZIO stockholders holding approximately 89% of the voting power have also given their approval.
Upon completion of the transaction, VIZIO’s Class A common stock will no longer be publicly listed. Walmart plans to finance the acquisition using cash and/or debt and expects the transaction to be slightly dilutive to EPS in the near term due to associated costs.
Overall, this acquisition represents a significant milestone for Walmart as it expands its presence in the in-home entertainment and media experiences market. With VIZIO’s technology and expertise, Walmart will be able to offer its customers unparalleled entertainment options while providing advertisers with unique opportunities to engage with their target audience. As the retail landscape continues to evolve, Walmart is positioning itself at the forefront of retail and entertainment convergence.
About Walmart:
Walmart Inc. is a people-led, tech-powered omnichannel retailer that aims to help people save money and live better. With over 10,500 stores and numerous eCommerce websites in 19 countries, Walmart serves approximately 255 million customers and members each week. The company is committed to sustainability, corporate philanthropy, and employment opportunity.
About VIZIO:
VIZIO Holding Corp. is a leading manufacturer of smart TVs and home entertainment devices. Headquartered in Orange County, California, VIZIO’s mission is to deliver immersive entertainment and compelling lifestyle enhancements that make its products the center of the connected home. The company offers a range of Smart TVs and soundbars that provide consumers with an elevated audiovisual experience.
Disclaimer: This article contains forward-looking statements and should be read in conjunction with Walmart’s and VIZIO’s SEC filings for a comprehensive understanding of the risks and uncertainties associated with the transaction. The parties cannot assure readers that the future results reflected in or implied by these forward-looking statements will be realized.