Walmart revealed to Progressive Grocer that it has entered into an agreement to purchase Vizio Holding Corp. for $11.50 per share in cash. That is approximately $2.3 billion in cash. According to Walmart the acquisition will enable the company to connect with its customers with innovative television, in home entertainment and media experiences.
Walmart also indicated that the acquisition of Vizio with its SmartCast Operating System would further accelerate its Walmart Connect retail business in the U.S., by combining Vizio’s advertising solutions business with Walmart’s capabilities. Those benefits would be strengthened by the growth of connected platforms and Walmart’s industry leading panel sales.
Aha! There is a clue to the acquisition.
According to Seth Dallaire. EVP and chief revenue officer of Walmart US, “Vizio’s customer-centric operation will provide great viewing experiences at attractive price points. We (Walmart) also believe it enables a profitable advertising business that is rapidly scaling.”
Dallaire continued: “Our (Walmart) media business, “Walmart Connect”, is helping brands create meaningful connections 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.”
Vizio was founded in 2002 with a specific mission. That was to deliver immersive entertainment and innovative connected home devices to consumers at a great value. The company’s growing device ecosystem and its SmartCast Operating System have amassed more than 18 million active accounts, growing about 400% since 2018.
“We believe this is the ideal next chapter in Vizio’s history by bringing together the capabilities and resources. We will drive innovation and create even more value for our customers” said William Wang, CEO of Vizio.
Walmart Connect business grew 30% for the fiscal year 2024 while the division continued to innovate on omnichannel solutions for a wide array of advertisers. Each week about 240 million customers and members visit Walmart’s approximately 10,500 stores and numerous commercial websites in 19 countries. It certainly makes Walmart the retailer of this century.
POSTSCRIPT: This is exciting news. The more people watch TV shows on the Walmart channel, the more Walmart will sell them their merchandise. This acquisition adds professionalism and creativity to make the products more wanted. Walmart’s sales in the fourth quarter at 5.7% were above expectations and we could see further growth this year and the year ahead.
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