The acquisition would enable Walmart to enhance its media business, Walmart Connect, by combining Vizio’s SmartCast Operating System with Walmart’s reach and capabilities, the companies said in a Tuesday (Feb. 20) press release.
The transaction is subject to regulatory clearance and other customary closing conditions, according to the release. Upon completion of the transaction, Vizio’s Class A common stock will no longer be publicly listed.
“We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment,” Seth Dallaire, executive vice president and chief revenue officer at Walmart U.S., said in the release.
Vizio has seen 400% growth in active accounts since 2018, the release said. It has more than 18 million active accounts and a growing advertising business.
Walmart’s acquisition of Vizio is seen as the next chapter in Vizio’s history, bringing together resources to drive innovation and create more value for customers, Vizio CEO William Wang said in the release.
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“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,” Wang said.
Walmart Connect, Walmart’s omnichannel media business, has experienced 30% growth in fiscal year 2024, per the release. The acquisition of Vizio is expected to further accelerate Walmart Connect’s development and provide new opportunities for advertisers to engage with customers.
It was reported Feb. 13 that Walmart was in talks to acquire Vizio. The retailer has historically been the smart television maker’s largest customer, with the Vizio brand being the top-selling television brand at Walmart stores.
The potential deal aims to boost Walmart’s advertising business, as it and other major chains increasingly recognize the importance of consumer data and ad space as a factor in holding their ground against Amazon, PYMNTS reported Friday (Feb. 16).
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