Retail Giant Walmart Acquires Vizio for $2.3 Billion – Targets Smart TV Advertising Dominance
Walmart Acquires Vizio – Walmart has revealed plans to acquire smart TV manufacturer Vizio for a total of $2.3 billion, a move aimed at bolstering its advertising business through Vizio’s SmartCast OS. While Walmart has been a major retailer of Vizio TVs for an extended period, the acquisition is expected to facilitate the expansion of a profitable advertising business, leveraging Vizio’s SmartCast OS. The deal is currently pending regulatory approval.
Vizio is renowned for its solid mid-range TVs, often equipped with the SmartCast operating system that supports free ad-supported content. The company recently updated its TV lineup, introducing a more user-friendly interface and faster startups and app switching. Walmart has prominently featured Vizio, along with TCL, on its shelves. Despite having its own TV house brand, ONN, known for more budget-friendly options under $500, the retail giant aims to combine efforts with Vizio for mutual benefits.
One significant aspect of the acquisition involves the integration of their respective advertising businesses. Walmart, with its existing $2.7 billion ad business, stands to gain increased access to crucial consumer information, including viewership data. The collaboration would also amplify the visibility of Walmart’s advertisements, allowing companies selling products at Walmart to extend their reach to Vizio TVs, with the added capability of tracking these ads.
Seth Dallaire, Walmart’s VP, expressed optimism about the impact of merging the two businesses, stating, “We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.” Vizio CEO William Wang added that their technology would contribute to establishing a scaled, connected TV advertising platform for Walmart Connect.
This strategic acquisition could also be seen as a response to Amazon’s presence in the smart TV market, particularly in television retailing and advertising. As reported by The Wall Street Journal, Amazon’s Fire TV business is a formidable player in the industry. By joining forces with Vizio, Walmart aims to enhance its competitive position, leveraging the vast potential of smart TVs to collect personalized consumer data for targeted advertising, a space where Amazon holds a significant position behind Alphabet and Meta in the United States.
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