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Walmart Accepts a $2.3 Billion Purchase of VIZIO Holding Corp.

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Leading smart TV maker VIZIO and retail behemoth Walmart announced a historic deal today. Walmart will buy VIZIO for $11.50 per share in cash, or roughly $2.3 billion. With this calculated action, Walmart hopes to strengthen its media division, Walmart Connect, and transform the retail and entertainment industries by utilizing VIZIO’s SmartCast Operating System.

Walmart will have cutting-edge ways to engage customers with cutting-edge television and in-home entertainment experiences thanks to the acquisition of VIZIO. Furthermore, it will give advertisers never-before-seen chances to engage with customers on a large scale, boosting the effectiveness of advertising spend inside Walmart’s network.

Walmart U.S.’s Executive Vice President and Chief Revenue Officer, Seth Dallaire, expressed excitement about the acquisition and credited VIZIO’s thriving advertising business and customer-centric strategy as major motivators. It is anticipated that the combination of Walmart Connect and VIZIO’s capabilities will change the retail and entertainment landscape by providing advertisers and consumers with distinctive value propositions.

Founded in 2002 with the goal of offering immersive entertainment at an affordable price, VIZIO has grown at an impressive rate, with over 18 million active accounts and 400% more users since 2018. With over 500 direct advertiser connections, including Fortune 500 organizations, VIZIO has established itself as a pioneer in the connected TV industry thanks to its SmartCast platform and booming advertising business.

VIZIO’s CEO, William Wang, expressed optimism that Walmart’s vision and VIZIO’s mission are strategically aligned and that innovative synergies will increase customer value. The VIZIO Board of Directors has unanimously approved the transaction, and 89% of voting power’s shareholders, including Mr. Wang and associates, have expressed strong support for it.

Walmart’s omnichannel media company, Walmart Connect, has had rapid growth, rising by 30% in the company’s fiscal year 2024. This growth trajectory is anticipated to be further accelerated by the acquisition of VIZIO, which will provide improved advertising solutions across many platforms.

The specifics of the transaction encompass the necessary regulatory clearances as well as the board of directors and stockholders’ approval. VIZIO’s Class A common stock will be delisted from the public market upon completion. Walmart expects to finance the acquisition with debt and/or cash, with an IRR that is higher than the ROI that is being stated.

After the deal closes, VIZIO’s operations will be merged into Walmart’s U.S. division, ushering in a new phase in the development of both businesses as they lead the way in the future of the convergence of retail and entertainment.

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