Vizio is one of the biggest TV brands out there, and also one that has seen itself subject of a few buyout attempts. Now, one bidder has managed to get itself the company–and it’s none other than Walmart.
Walmart has finalized its acquisition of Vizio, a leading manufacturer of smart TVs, for $2.3 billion in cash. This strategic move was made mostly with the aim of bolstering Walmart’s advertising capabilities and enhance its retail media network, Walmart Connect. The merger was first announced all the way back in February, but it has now surpassed all necessary regulatory roadblocks for it to actually happen.
Vizio’s SmartCast platform, which boasts over 19 million active accounts, provides viewers with free, ad-supported streaming content. This acquisition will enable Walmart to connect with a vast audience of engaged consumers, offering advertisers new and innovative ways to reach their target market. Vizio will continue to operate independently under the leadership of CEO William Wang, who will report to Seth Dallaire, executive VP and chief growth officer at the U.S. division of Walmart. The company’s headquarters will remain in Irvine, California. Vizio’s shares will be delisted from the New York Stock Exchange, and the company will be incorporated into Walmart’s U.S. segment.
While Walmart was the first to actually finalize the buyout, it’s not the first one. Back in 2016, Chinese company LeEco agreed to acquire the company for $2 billion, but the merger was blocked by the Chinese government in 2017, with subsequent legal drama continuing all the way up to 2016.
“Vizio’s customer-centric approach aligns perfectly with Walmart’s values,” said Seth Dallaire. “By integrating Vizio’s ad business with Walmart Connect, we can create impactful experiences for our customers and invest further in our business.” William Wang, on the other hand, added that “with Walmart’s extensive resources, we can accelerate our mission to deliver exceptional home entertainment experiences.”
Both companies will continue to remain independent for the time being, but we’ll have to wait and see how the future for both pans out.
Source: Variety
