Walmart completes $2.3 billion Vizio acquisition
Walmart Inc. has closed its $2.3 billion purchase of smart TV maker/streaming platform provider Vizio.
The discounter initially announced it would purchase Vizio for $11.50 per share in cash, in a deal valued at approximately $2.3 billion, in February 2024. Following a pause Walmart initiated in March to allow federal regulators from the Federal Trade Commission (FTC) and the Department of Justice (DOJ) to review the deal, it has now gone through.
With the closing 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 New York Stock Exchange. Vizio’s business will be reported as part of the Walmart U.S. segment going forward.
Walmart and Vizio plan to continue to operate separately for the foreseeable future. William Wang will continue to lead Vizio as CEO, reporting to Seth Dallaire, executive VP and chief growth officer, Walmart U.S.
"Vizio offers great products at great prices that customers love," said Dallaire. "They’ve always put customers at the center of their business – and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out. Vizio has also expertly changed their business over time, like building and quickly scaling a profitable advertising business. Pairing it with Walmart Connect will be impactful and allow us to invest in our business even further on behalf of our customers."
Walmart seeks to boost targeted ad business
By acquiring Vizio and its SmartCast operating system (OS), Walmart will create new opportunities to help advertisers connect with customers via its Walmart Connect retail media network, as well as offer new connected TV and streaming content for consumers.
[READ MORE: Walmart revamping, expanding ad business; adding new platform]
The deal comes as Walmart is competing with Amazon's growing and lucrative ad business. Vizio’s device portfolio and its Smart TV operating system, SmartCast, has more than 19 million active accounts. The company says its Platform+ segment, which consists largely of its advertising business, now accounts for all of its gross profit.
"Since the inception of Vizio, our mission has been to provide incredible value, great technology, and award-winning innovation," said William Wang, CEO and founder of Vizio. "Today, with the tremendous number of resources from Walmart, we will continue to further accelerate that mission around the best home entertainment experience."
Based in Bentonville, Ark., Walmart Inc. operates more than 10,500 stores and numerous e-commerce websites in 19 countries.
