Walmart has confirmed plans to acquire TV manufacturer Vizio for approximately $2.3 billion as part of a strategic move to bolster its advertising business.
Walmart explained in a press release that acquiring Vizio and its SmartCast Operating System would allow the retailer to engage with customers through new mediums, such as innovative television and in-home entertainment experiences, while also offering advertisers unique opportunities to connect with customers at scale.
Vizio currently holds over 500 direct advertiser partnerships via its Vizio Platform Plus business, which it credits for a majority of the company’s gross profit. It additionally boasts over 18 million active accounts on its SmartCast smart TV operating system.
While Walmart already has its own Onn brand of TVs, acquiring Vizio will enhance its competitiveness against low-cost smart TVs from companies like Amazon and Roku.
In the past, Walmart joined forces with Innovid to display personalized ads on TVs and teamed up with Roku for “shoppable ads” that enabled customers to purchase Walmart items directly from their TVs. The planned acquisition of Vizio will go through typical regulatory approval processes and could be terminated within a 45-day window if Vizio receives a better offer.
This deal follows Vizio’s recent revamp of its TV software, underlining the importance of such advancements as it competes with brands like Hisense, TCL, and affordable Roku TVs.
Vizio’s CEO, William Wang, sees the acquisition deal with Walmart as the perfect progression for Vizio. He stated that by combining their resources and capabilities, they can stimulate innovation and create added value for their customers. Wang believes that Vizio’s mission and vision are in sync with Walmart’s, and that Vizio’s technology will boost Walmart Connect’s scaled and connected TV advertising platform.
