Walmart has announced it is acquiring TV manufacturer Vizio in a deal reportedly worth $2.3B.
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In a surprise announcement on Tuesday morning, Walmart announced that it will be purchasing smart TV maker Vizio. Reportedly the deal is not so much for the hardware manufacturing, however, as it is an attempt to get into people’s homes. Thanks to Vizio’s SmartCast Operating System having 18 million active accounts, Walmart appears to be using this as a way to counter Amazon’s growing e-commerce and streaming ad mixture.
“There is a lot to be excited about with this acquisition,” said Seth Dallaire, EVP and chief revenue officer, Walmart U.S. “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.”
“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,” Vizio CEO William Wang said of the news. “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.”
There’s no word as of yet as to when the deal will close, but the impact is already being felt across the industry, with Roku’s share prices dropping 7.28% for the day at the time of publication.
IMAGE SOURCE: Shutterstock – Vizio – ZikG
