Recently, I reported on a story that Walmart was looking to snatch up TV manufacturer Vizio, with many in the space seeing it as a bid by Walmart to expand its advertising potential via data gathered through Vizio’s smart TVs. Well, it seems in that short period of time, Walmart pulled the trigger, with the acquisition of Vizio reaching an agreement for $2.3 billion.
VIZIO stockholders (including Mr. Wang and his affiliates) holding approximately 89% of the voting power of VIZIO’s outstanding common shares have approved the transaction pending regulatory clearance.
Following the completion of the transaction, VIZIO’s business will be reported as part of the Walmart U.S. segment.
In an official statement given by the company, Walmart believes the acquisition of VIZIO will serve as phenomenal way for “advertisers connect with customers”–a sentiment that many hold regarding the future of home entertainment platforms–while also stating it will help Walmart itself “connect with and serve its customers in new ways.”
“We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart U.S. in a press release discussing VIZIO’s acquisition.
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“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.”
Founded in 2002, VIZIO has steadily grown to be a massive player within the smart TV ecosystem, with the company amassing over 18 million active accounts on its Smart TV OS. Since 2018, the company has grown 400%, with the company developing its own advertising business to continue to grow the brand with corporate partners.
The Platform+ business, which now consists primarily of its advertising business, accounts for much of the company’s gross profit.
“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 William Wang, chief executive officer of VIZIO.
It is not yet determined how this turn of events may impact distribution and availability of VIZIO products outside of Walmart.
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