Walmart has disclosed plans to buy TV manufacturer Vizio, the companies announced Tuesday, as the largest U.S. retailer grows its high-profit advertisement business. Walmart will acquire Vizio for a deal valued at $2.3 billion, or $11.50 per share.
The acquisition would enable Walmart to enhance its media advert business, Walmart Connect, by combining Vizio’s SmartCast Operating System with Walmart’s reach and capabilities, the companies said in a press release on Tuesday (February 20). Hence, Walmart’s control of the Vizio platform will give companies that advertise with the retailer a greater reach.
Speaking on the deal, executive vice president and chief revenue officer at Walmart U.S., Seth Dallaire, said, “We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
Also commenting on the deal, Vizio CEO, William Wang, said, “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.”
As such, Walmart’s acquisition of Vizio will open a new chapter for Vizio, as the deal will create the opportunity for both parties to bring together resources to drive innovation and create more value for customers.
