Walmart has announced a blockbuster $2.3 billion deal to purchase smart television manufacturer Vizio in an aggressive move to boost its fledgling advertising business and better compete with retail and streaming giants like Amazon, Roku and Google. The acquisition will give the massive retailer direct access to Vizio’s installed base of over 18 million active user accounts and its SmartCast operating system software, which powers the company’s range of affordable internet-connected televisions.
According to Walmart, owning Vizio and its software platform will “enable Walmart to connect with and serve its customers in new ways, including innovative television and in-home entertainment and media experiences.” The retail behemoth specifically called out the deal, creating “new opportunities to help advertisers connect with customers” on a much wider scale. Vizio has established over 500 direct partnerships with advertisers through its Vizio Platform Plus ecosystem, which now represents the majority of the company’s profits. Additionally, you can also read about- Capital One Acquires Discover for $35.3B.
The purchase signals Walmart’s ambitions to aggressively compete in the streaming and advertising landscape that is increasingly dominated by big tech firms. It already has its own Onn brand of budget smart TVs, but gaining Vizio’s software capabilities and large direct-to-consumer reach will allow Walmart to circumvent third parties and directly serve customized content and ads to consumers in their living rooms. While further details have yet to emerge, the deal shows Walmart is making serious moves into the world of streaming, advertising and consumer home entertainment. Regulatory approvals are still pending, but if all goes through, the Vizio acquisition will become the cornerstone of Walmart’s connected devices and services strategy for years to come.
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