Confirming rumors, Walmart announced today that it has acquired US TV maker Vizio for $2.3 billion to bolster its advertising business.
In recent years, Vizio has ceded its leadership in value-for-money to leaner Chinese TV makers like Hisense and TCL, prompting the company to shift its focus towards advertising on its SmartCast-based connected TVs.
Vizio is now under the ownership of US retail chain Walmart, unless a "superior offer" emerges within a 45-day period, according to today's press release. Walmart also owns Sam's Club, both of which are major retailers of Vizio TVs and soundbars.
- "There is a lot to be excited about with this acquisition," said Seth Dallaire, EVP and CRO, Walmart U.S. "We believe Vizio's customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling. Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment."
18 million SmartCast TVs to show ads to
With the acquisition, Walmart will now have ownership of both Vizio and its SmartCast operating system, which has over 18 million active accounts.
Vizio's SmartCast platform. Photo: Vizio
What can consumers expect from Vizio TVs in the future? Walmart has made it clear that its intention is to expand the advertising business.
Ads are creeping in almost everywhere on Smart TVs these days. Platforms such as Google TV, FireTV, and Roku TVs are built around ads, while LG's webOS and Samsung's Tizen are progressively ramping up the ad load even on premium TVs that customers have paid thousands of dollars for.
