- Walmart has agreed to purchase Vizio, a major supplier of smart TVs to Walmart stores, for $2.3 billion in cash to expand its growing advertising business.
- The deal gives Walmart full control of Vizio’s SmartCast operating system, allowing Walmart to access millions of active user accounts and generate more ad revenue.
- Walmart hopes to leverage Vizio’s technology and talent to develop new in-home entertainment experiences and innovative ad-supported products to better compete with Amazon’s ad business.
Walmart has agreed to purchase smart TV manufacturer Vizio for $2.3 billion in an all-cash deal. This acquisition allows Walmart to expand its growing advertising business and boost profits.
About The Purchase
The purchase price comes out to $1,150 per share. Vizio’s stock price has risen significantly since reports of the potential deal emerged last week.
Vizio has long been a major supplier of smart TVs to Walmart and Sam’s Club stores. Now, Walmart will gain full control of Vizio’s SmartCast operating system, which powers Vizio’s smart TVs and allows users to stream free, ad-supported content.
Growing The Ad Business
Walmart hopes to leverage Vizio’s SmartCast platform to rapidly expand its own advertising segment, Walmart Connect. Vizio’s operating system provides Walmart access to millions of active user accounts and more avenues to generate ad revenue.
The acquisition supports Walmart’s priority of boosting profits through higher-margin initiatives like advertising. This allows the retailer to better compete with Amazon’s fast-growing ad business.
What’s Next
According to Walmart, the Vizio deal creates opportunities to develop new in-home entertainment experiences. Walmart also gains talent and technology that could allow for innovative ad-supported products.
The purchase of Vizio signifies a major strategic investment as Walmart aims to transform its media and advertising capabilities.
