Last updated on December 3rd, 2024
Walmart has entered into an agreement to acquire Vizio and its SmartCast Operating System. This will help the retailer connect with and serve its customers in new ways, including innovative television and in-home entertainment and media experiences.
It would also create new opportunities to help advertisers connect with customers, empowering brands with differentiated opportunities to engage at scale and to gain greater impact from their advertising spend with Walmart.
The combination would be expected to accelerate Walmart’s media business in the U.S., Walmart Connect, bringing together Vizio’s advertising solutions business with Walmart’s reach and capabilities. These benefits would be further strengthened by the growth of connected TV platforms and Walmart’s TV panel sales.
“There is a lot to be excited about with this acquisition,” said Seth Dallaire, EVP and chief revenue officer, Walmart U.S.
“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. Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
Since its founding in 2002, Vizio’s mission has been to deliver immersive entertainment and innovative connected home devices to consumers at a great value. In recent years, Vizio’s device ecosystem and its Smart TV operating system, SmartCast, have gained more than 18 million active accounts since 2018.
Vizio has built this customer-centric platform on its devices enabling users to stream content for free by watching ads. Building on this foundation, it created an advertising business that has continued to grow while enabling marketers to reach consumers at scale. The platform has more than 500 direct advertiser relationships.
“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,” said CEO William Wang.
“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. This transaction delivers immediate and compelling value to Vizio stockholders and is a true testament to the hard work of the entire Vizio team.”
Walmart Connect, the retailer’s closed-loop omnichannel media business, grew 30 percent for fiscal year 2024. The business offers Walmart suppliers and sellers attractive opportunities to reach their desired customers no matter where, how and when they shop. The company continues to innovate to bring to life distinct omnichannel solutions for advertisers of all sizes and accelerate shared growth.
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. Following the completion of the transaction, the tech company’s business will be reported as part of the Walmart U.S. segment.
UDPATE: On Dec. 3, Walmart announced the completion of the acquisition of Vizio.
As a result of the completion of the transaction, VIZIO has become a wholly-owned subsidiary of Walmart, and VIZIO’s Class A common stock will no longer be listed for trading on the NYSE, which is expected to take effect as of the close of market on Dec. 3. VIZIO’s business will be reported as part of the Walmart U.S. segment going forward.
