Walmart Secures Deal to Acquire Vizio for $2.3 Billion

Walmart has recently announced that it is set to purchase the smart TV company Vizio for $2.3 billion. Despite Vizio being a top contender in the TV manufacturing sector in North America, Walmart's primary interest lies not in its television production but in Vizio's SmartCast Operating System. This system has 18 million active users, presenting a target for advertising efforts. Walmart's decision comes as a strategic move to counterbalance Amazon's successful fusion of e-commerce with streaming advertisements.

Walmart has been in the American media sector, having sold its Vudu streaming service to NBCUniversal’s Fandango in 2020 after managing it for a decade. Walmart anticipates a smoother integration with Vizio compared to its experience with Vudu. This acquisition signals a competitive stance against Roku, which powers a third of all smart TVs in North America, especially as Roku experiences a downturn in its stock value following mixed financial reports.

A key aspect of this acquisition is the merger of Walmart's and Vizio's advertising ventures. Walmart, which already operates a $2.7 billion advertising division, aims to leverage Vizio to enhance its access to vital consumer data, such as viewership habits. This could amplify the visibility of ads, particularly for brands sold at Walmart, on Vizio’s platform.

Vizio is recognized for its mid-tier TVs, mostly featuring the SmartCast OS, which offers access to free, ad-supported content. The company has recently updated its product line to enhance user experience with a more intuitive interface and quicker performance.

Walmart frequently promotes Vizio products, alongside TCL, showcasing the brand prominently in its stores. While Walmart has its own TV brand, ONN, those models are generally more budget-friendly, often priced below $500.