Walmart buys Smart TV maker Vizio for $2.3 billion, US retail giant announcement as part of its latest results report. While Walmart has long been a top seller of Vizio TVs, the company says the acquisition “enables a profitable advertising business that scales quickly” through the company's SmartCast operating system. The deal is still subject to regulatory approval.
Vizio sells solid mid-range TVs, most equipped with its SmartCast operating system that supports free ad-supported content. The company recently refreshed its range with a more intuitive user interface And faster starts and application switches.
Walmart, meanwhile, puts the brand prominently on its shelves (along with TCL), as anyone who's been there recently has probably noticed. The retailer already has its own TV brand, ONN, but these TVs are very low-end and typically sell for less than $500.
More importantly, the companies plan to consolidate their respective advertising businesses. Walmart already has a $2.7 billion advertising business, but Vizio would increase its access to key consumer information, such as audience data. It would also give Walmart more exposure to its ads — for example, companies that sell products at Walmart could also run ads on Vizio TVs, all of which could be tracked by the retailer.
“We believe the combination of these two companies would be impactful as we redefine the intersection of retail and entertainment,” said Seth Dallaire, Walmart vice president. “Our technology will help bring a connected, large-scale TV advertising platform to Walmart Connect,” added William Wang, CEO of Vizio.
The acquisition could also thwart Amazon's in-house Fire TV business, both in terms of TV retail and advertising, as The Wall Street Journal reported last week. Amazon has one of the largest advertising businesses in the United States behind Alphabet and Meta, and smart TVs help it collect personalized consumer data for targeted advertising.
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