Walmart is set to acquire Vizio in a $2.3 billion deal. What Walmart aims to get with this deal is still to be seen. Well, maybe purchasing a cheap TV maker might just boost the advertising business of Walmart.
Walmart is Set to Acquire Vizio
Super chain store platform and company Walmart is currently planning to buy Vizio, a TV manufacturer in a deal that is reportedly valued at approximately $2.3 billion. Said rumors of the seal came to the limelight in the previous week, and right at this moment, the retail conglomerate has stated that the acquisition is official and part of a move to help boost its ad business.
“The acquisition of Vizio and its SmartCast Operating System (OS) would enable Walmart to connect with and serve its customers in new ways including innovative television and in-home entertainment and media experiences,” Walmart in a press release stated. “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.”
What The acquisition of Vizio by Walmart Means
The acquisition of Vizio by Walmart marks a significant move by the retail giant to strengthen its position in the smart TV market and enhance its advertising capabilities. Vizio’s Vizio Platform Plus business, with over 500 direct advertiser partnerships, is a key asset that contributes to the majority of Vizio’s gross profit. Additionally, Vizio’s SmartCast smart TV OS, used by more than 18 million active accounts, offers Walmart a valuable platform to reach consumers through personalized ads and shoppable features.
By acquiring Vizio, Walmart aims to better compete with other affordable smart TV brands like Amazon and Roku. While Walmart already has its Onn in-house brand of TVs, owning Vizio will provide access to advanced technology and a larger customer base. Walmart’s previous partnerships with Innovid and Roku for personalized and shoppable ads indicate its commitment to leveraging TV advertising to drive sales.
The Proposed Acquisition Is Subject To Regulatory Approval
The proposed acquisition is subject to regulatory approval and includes provisions for termination if Vizio receives a superior offer within a 45-day period. Vizio’s recent software overhaul, which improved the user experience for its TVs, underscores the importance of software differentiation in the competitive smart TV market.
As Vizio continues to compete against brands like Hisense, TCL, and budget-priced Roku TVs, its strong advertising partnerships and innovative software will be critical assets for Walmart to leverage in driving growth and market share in the smart TV industry.
What Vizio CEO Thinks About This Acquisition
“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,” Vizio CEO William Wang reveals. “Walmart’s approach is aligned with Vizio’s mission and vision, and our technology will help bring a scaled, connected TV advertising platform to Walmart Connect.”
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