Vizio has become a household name ever since it launched in 2002 but now, the consumer electronics company is about to become part of a much larger name: Walmart. The retail giant announced it was planning to expand its reach by acquiring Vizio as part of a $2.3 billion deal.
The main reason behind the acquisition is Walmart’s desire to use Vizio’s SmartCast Operating System to offer “innovative television and in-home entertainment and media experiences”. Advertising is another big goal of the company, which seeks to offer its partners new ways to reach its customers.
With over 18 million active accounts, Vizio’s SmartCast will significantly boost Walmart’s efforts to merge its media and retail business divisions. Not only will this boost come in the form of a considerably bigger audience but it will also bring more than 500 direct advertiser relationships under Walmart’s umbrella.
Walmart Connect, Walmart’s own media channel, has grown 30% so far this year. The closed-loop system offers brands access to Walmart customer behavior that offers “measurable results” to their businesses.
The successful integration of the two ecosystems could allow Walmart to compete with advertisement industry giants like Alphabet (Google’s parent company) and Meta. It could also help Walmart level up the field with Amazon, which has become a dominant player in the retail industry.
The acquisition deal was reported as being unanimously approved by Vizio’s board of directors and over 89% of stockholders, meaning no further approval is required. Now, Vizio has 45 days to decline the transaction if it receives and accepts a “superior offer”. If the transaction is not declined during this period, the deal will be completed and VIZIO’s stock will no longer be public.
Vizio’s CEO William Wang called the acquisition “the ideal next chapter in Vizio’s history”, expressing his belief that Walmart’s vision aligns with the company’s own. According to Wang, the deal also benefits all stockholders and represents the culmination of years of effort by the company’s team.
As consumers continue shifting purchases online and spending more time streaming entertainment, traditional retailers must adapt quickly or risk becoming irrelevant. Walmart’s decision to acquire Vizio demonstrates the ongoing struggle of brick-and-mortar retail stores in an increasingly digital world.
