Walmart Acquires Smart TV Firm Vizio For $2.3B, Altering Streaming Ad Landscape

Retail giant Walmart is acquiring smart TV maker Vizio for $2.3 billion in a deal that will alter the streaming advertising landscape.

While Vizio is a leading manufacturer of televisions, rivaling Samsung for supremacy in North America, Walmart is not mainly interested in its hardware business. Instead, it coveted Vizio’s SmartCast Operating System, which has millions of users who can be targeted with advertising. With Amazon knitting together e-commerce and streaming advertising with increasing potency, Walmart saw an opportunity in Vizio to counter-attack.

Walmart has had phases of interest in the U.S. media business, selling its Vudu streaming subsidiary to NBCUniversal’s Fandango in 2020 after a 10-year run.

Given that Walmart is a top retailer of smart TVs, adding Vizio should be a more streamlined process than building out Vudu.

“There is a lot to be excited about with this acquisition,” said Seth Dallaire, EVP and chief revenue officer, 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.”

Vizio was founded in 2002. Its smart TV operating system, SmartCast, has surpassed 18 million active accounts, growing about 400% since 2018. Advertising now accounts for a majority of the company’s gross profit.

“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,” Vizio CEO William Wang said. “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.”