Walmart announced on Tuesday that it has agreed to buy consumer electronics company Vizio for $2.3 billion in a move that is expected to “further accelerate” Walmart Connect, the retail giant’s media and advertising business, as it continues to challenge Amazon in the advertising space.
The merger would “redefine the intersection of retail and entertainment,” according to a Walmart ... [+]
The agreement, which was unanimously approved by Vizio’s board of directors, is valued at $11.50 per share, or $2.3 billion, in cash.
Seth Dallaire, executive vice president and chief revenue officer at Walmart U.S., said in the release the acquisition would “redefine the intersection of retail and entertainment.”
Vizio CEO William Wang said in a statement the acquisition would give Walmart Connect a television advertising platform, expanding the retail giant’s advertising presence and, in turn, bringing value to Vizio’s investors.
Walmart Connect allows advertisers and brands to run advertisements online and in stores using a “closed-loop system,” which measures marketing efforts using sales.
Premarket shares of Vizio climbed 15% on Tuesday, according to CNBC.
18 million. That’s how many active customers Vizio and its SmartCast system have, growing 400% since 2018, according to the release.
Last month, Walmart announced plans to open 150 stores over the next five years while remodeling 650 stores across 47 states within the next 12 months. The first two new stores are set to open in Santa Rosa Beach, Florida, and Atlanta in the spring.
Since 2019, Walmart has announced a number of initiatives to break into the advertising space to compete with Amazon and other big retailers. In 2019, Walmart Media Group, what is now Walmart Connect, acquired Polymorph Labs, a Silicon Valley-based advertising startup. In an effort to further expand its grip in the advertising space, it renamed Walmart Media Group in 2021 and expanded Walmart Connect’s offerings. Vizio, which was founded in 2002, is the largest television brand that the retail giant sells based on sales, the Wall Street Journal reported. Vizio also set its sights on the advertising space, running advertisements on its homescreen and streaming channels, which generated $147 million in revenue for the company in 2020. In 2019, the television maker launched Vizio Ads, a direct advertising platform.
Why Walmart is buying Vizio (CNN)
Walmart plans big push to challenge Amazon on advertising (Reuters)
Walmart Stock Rides Best Day Since 2022 To Record High (Forbes)
Walmart Is Opening 150 New Stores—With First Two Set To Open In Spring (Forbes)