Walmart acquires TV manufacturer Vizio in $2.3bn deal

The US-based retail giant, Walmart, has struck a deal with Vizio to acquire the smart TV outfit and manufacturer for approximately $2.3 billion.

The deal includes the acquisition of Vizio and its Smart TV operating system, SmartCast, for $11.50 per share in cash. Walmart said it would enable the company to serve its customers in new ways including innovative television and in-home entertainment and media experiences, as well as create new opportunities for advertisers.

Vizio which was founded in 2002 has seen SmartCast reach over 18 million active accounts and also has over 500 direct advertising partners, according to the company. It also operates WatchFree+, a live and on-demand ad-supported service

The supermarket chain also expects the deal will accelerate its US media unit, Walmart Connect, by leveraging Vizio’s advertising solutions business.

Vizio’s board of directors has unanimously approved the transaction. The company has the right to terminate the transaction within a 45-day period if, subject to the terms and conditions of the merger agreement.

Seth Dallaire, executive vice president and chief revenue officer, Walmart US, said: “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.”

William Wang, chief executive officer of Vizio, added: “Walmart’s approach is aligned with Vizio’s mission and vision, and our technology will help bring a scaled, connected TV advertising platform to Walmart Connect. This transaction delivers immediate and compelling value to Vizio stockholders and is a true testament to the hard work of the entire Vizio team.”