Walmart has officially announced the completion of its acquisition of VIZIO, following the expiration of the federal regulatory waiting period.
As announced in February of this year, this acquisition, which includes VIZIO’s SmartCast operating system, allows Walmart to offer its customers new ways to enhance their shopping experiences. Additionally, it presents innovative and differentiated opportunities for advertisers to connect with consumers at scale.
This will help drive product discovery and enable brands to achieve a greater impact with their advertising investments through Walmart Connect, the company’s retail media business in the U.S.
According to Seth Dallaire, executive vice president and chief growth officer of Walmart US, VIZIO provides excellent products at incredible prices.
“VIZIO has also expertly evolved its business over time, such as building and rapidly scaling a profitable advertising business. Combining it with Walmart Connect will have a significant impact and allow us to invest even more in our business on behalf of our customers,” he stated.
For his part, William Wang, CEO and founder of VIZIO, noted that VIZIO’s mission has been to deliver outstanding technology and award-winning innovation.
“Today, with Walmart’s tremendous resources, we will continue to further accelerate that mission around the best home entertainment experience,” he said.
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What is VIZIO?
Vizio is a television brand that, while less known in some markets, enjoys great popularity in the United States. Its televisions feature the SmartCast operating system, providing access to well-known entertainment applications.
Recently, Vizio announced an expansion of its WatchFree service, allowing owners of its televisions to enjoy a wide range of free streaming content. This development translates into a significant increase in the range of channels available, thereby diversifying content options for its users.
Viewers who own a Vizio television will find this new selection of channels directly in the corresponding section of their device’s interface, ensuring a more enriching and accessible navigation experience. This strategy aims to enhance the brand’s appeal in a competitive market, offering a service that reinforces free access to streaming content.
How much did Walmart pay for VIZIO?
On February 20, 2024, Walmart announced the acquisition of VIZIO, the popular entertainment technology company and its SmartCast operating system, at a price of $11.50 per share in cash. This transaction represents a total equity value of approximately $2.3 billion.
Why did Walmart buy VIZIO?
Walmart has taken a significant step by acquiring Vizio, a company primarily known for its affordable televisions. However, Walmart’s interest focuses not only on consumer devices but also on Platform+, Vizio’s advertising division, in a strategic move aimed at competing with Amazon in the lucrative streaming advertising market.
Since its launch, SmartCast, Vizio’s operating system, has demonstrated remarkable growth, achieving a 400% increase since 2018. This growth has allowed the company to build a strong user base accessing ad-supported free content, which could be attractive to Walmart in its quest to diversify its revenue streams.
Vizio’s financial results for the third quarter of 2024 reflect that the company generated $248 million in device sales, including televisions and soundbars. Additionally, the advertising division, Platform+, contributed $197 million to the company’s total revenue.
Industry analysts have pointed out that this merger could result in an increase in advertising on Vizio televisions. Walmart, for its part, seeks to maximize its investment and consolidate its presence in a digital advertising market that has shown a 26% growth in the last quarter. Therefore, this acquisition not only positions Walmart as a direct competitor to Amazon but also redefines the dynamics of the digital advertising market in the streaming domain.
