Walmart to Acquire Smart TV Maker Vizio for $2.3 Billion

Walmart announced today that it will acquire Vizio for $2.3 billion, confirming recent information from the Wall Street Journal. Vizio is a US-based manufacturer of sound bars and smart TVs powered by the company’s SmartCast OS, which is something the retailer hopes to capitalize on to bolster its Walmart Connect media business.

“We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart US. “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.”

If Walmart already sells its own Onn-branded smart TVs, Vizio’s affordable models are already the best-selling smart TVs at Walmart stores. In its press release, Walmart highlighted the 18 million Vizio active accounts on the company’s smart TVs, as well as the fact that Vizio’s Platform Plus, the company’s ad-supported streaming TV service, now “accounts for a majority of the company’s gross profit.”

The acquisition is still subject to regulatory clearance, and Vizio also has the right to terminate the transaction if it receives and accepts a “superior offer” within the next 45 days. “We believe this is the ideal next chapter in Vizio’s history. By bringing our capabilities and resources together, we’ll drive innovation and create even more value for our customers,” said Vizio CEO William Wang today.