Walmart is officially acquiring Vizio in a meteoric $2.3 billion acquisition that will see the retail giant leveraging SmartCast OS to bolster its advertisement arm, Walmart Connect.
The news comes in a press release published Tuesday morning by Walmart itself, citing Vizio’s SmartCast as accounting “for the majority of the company’s growth in the last five years.”
Walmart’s $2.3B purchase rides on the heels of several reports last week claiming the deal’s highly potential nature, seeing Walmart take on major rivals like Amazon Fire TV and Roku. The deal, however, seems more so focused on pushing Walmart Connect to far more engaging realms as opposed to strengthening Vizio’s underlying TV manufacturing potential.
Injecting Walmart Connect into TVs everywhere
Walmart is set to use its newfound $2.3B purchase of Vizio to better capitalize its Connect ads business, which reportedly took home just under $3B in 2022, according to Insider Intelligence.
Through Vizio’s SmartCast OS, a platform that Walmart claims in its press release encompasses over 18 million users, the retail giant will be capable of peddling its shoppable advertisements to far more eyes worldwide.
Walmart writes in its release that SmartCast will also be able to “create opportunities to help advertisers connect with customers, empowering brands with differentiated and compelling opportunities,” which probably refers to more advanced and interactive shoppable ads.
In 2022, Walmart saddled up alongside Roku to deliver shoppable ads that allow users to buy products directly off the TV that are fulfilled by Walmart. The retail giant makes no mention of Roku in its release, despite the deal potentially still being in place. It also has partnered up with Innovid for similar personalized TV-based ads in 2023.
"The combination would be expected to further accelerate Walmart’s media business in the U.S., Walmart Connect, bringing together VIZIO's advertising solutions business with Walmart’s reach and capabilities."
Walmart
Though the deal with Vizio is finalized on the TV manufacturer’s side, it will still go through typical regulatory clearance. Vizio also has a 45-day window to pull out of the deal per a potential “superior offer” presented via an alternate source.
Vizio has long made its SmartCast OS a place of continued innovation, with an update to its speed and Home Screen redesign being pushed last year. The TV manufacturer could also potentially leverage that $2.3B capital for innovative TVs, which Walmart does mention at the beginning of its press release, despite ads being its primary vehicle for the investment.
Walmart Connect has evolved significantly over the past several years, with the retail giant claiming it has seen a 30% growth for fiscal year 2024. The firm could potentially see massive gains by making Vizio a newfound ads home for its ever-thriving business.
Walmart also has its own TV business in Onn, which could see further growth via Vizio manufacturing. The retail giant will now take on major rivals in the budget TV space, including both Roku and Amazon Fire TV through the $2.3B purchase of Vizio.
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