Walmart, the renowned global retail giant, has announced its strategic acquisition of VIZIO Holding Corp., a leading consumer electronics company known for its innovative Smart TVs and the SmartCast Operating System. This acquisition, valued at approximately $2.3 billion, or $11.50 per share in cash, marks a significant move by Walmart to enhance its Walmart Connect media business and delve deeper into the connected TV and advertising space.
VIZIO, established in 2002 and headquartered in Irvine, California, has been at the forefront of delivering immersive entertainment and innovative connected home devices at great value. The company has seen substantial growth over the years, with its SmartCast Operating System playing a crucial role in this success. SmartCast’s user-friendly platform has attracted over 18 million active accounts, growing about 400% since 2018. This growth is partly attributed to VIZIO’s ad-supported content, allowing users to stream for free, which has also bolstered its advertising business to become a major profit generator for the company.
The acquisition by Walmart is poised to create a symbiotic relationship between the two companies, leveraging VIZIO’s technological prowess and Walmart’s vast customer base and retail capabilities. Walmart Connect, which has already seen a 30% growth in the fiscal year 2024, stands to benefit significantly from this deal. The combination of VIZIO’s advertising solutions and Walmart’s reach is expected to offer brands unparalleled opportunities to engage with consumers at scale, thereby enhancing the impact of their advertising expenditures.
Seth Dallaire, Walmart U.S.’s Executive Vice President and Chief Revenue Officer, expressed excitement about the acquisition, highlighting VIZIO’s customer-centric approach and its potential to contribute to a profitable advertising business that is rapidly scaling. William Wang, CEO of VIZIO, echoed this sentiment, noting the alignment between Walmart’s approach and VIZIO’s mission and vision. He emphasized that this merger would drive innovation and create even more value for customers, delivering immediate and compelling value to VIZIO stockholders.
The transaction details reveal a unanimous approval by VIZIO’s Board of Directors and a significant stockholder approval, with around 89% of the voting power. Subject to regulatory clearance and other closing conditions, this acquisition is a testament to both companies’ commitment to driving innovation in retail and entertainment. Upon completion, VIZIO will no longer be publicly listed, and its business will be incorporated into the Walmart U.S. segment.
