Walmart has announced it will acquire VIZIO, the maker of smart home televisions for a cool $2.3 billion USD in cash.
The retail giant will be offering VIZIO shareholders $11.50 per share, which includes the TV maker’s SmartCast Operating System (OS). Walmart will then be able to offer customers even more smart home televisions. Walmart says this acquisition will also bolster its advertising business as it likely moves into streaming TV opportunities.
“There is a lot to be excited about with this acquisition,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart U.S., in a statement. “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.”
VIZIO has been known as an affordable maker of TVs that also include some decent high-quality offerings. The company’s SmartCast OS has over 18 million active accounts. The platform allows for streaming content for free powered by ads. Expect more Walmart ads to be shown to these customers.
“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, in a statement. “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.”
