Walmart has finalized the acquisition of VIZIO, a company known for its SmartCast Operating System. This follows the conclusion of the waiting period required by federal regulations. The purchase aims to enhance Walmart’s customer offerings and introduce new advertising opportunities through Walmart Connect, the company’s retail media business in the United States. With VIZIO’s established advertising business, Walmart aims to expand its reach and improve product visibility for advertisers and brands.
Seth Dallaire, Walmart U.S. executive vice president and chief growth officer, highlighted VIZIO’s customer-centric approach and successful evolution, particularly in its advertising business. This aligns with Walmart’s values, focusing on expanding their omnichannel experiences. VIZIO’s CEO, William Wang, expressed enthusiasm for the acquisition, emphasizing the potential to accelerate their mission of delivering quality home entertainment with Walmart’s resources.
The acquisition deal, announced on February 20, 2024, involved Walmart purchasing VIZIO for $11.50 per share in cash. This translates to an equity value of approximately $2.3 billion. VIZIO, founded in 2002, has been dedicated to providing connected home devices and entertainment solutions. The company has developed a platform with more than 19 million active accounts, growing significantly since 2018. VIZIO’s advertising business has expanded, forming relationships with various advertisers, including Fortune 500 companies.
Walmart Connect, Walmart’s retail media business, experienced a 26 percent growth in the third quarter of this year. The business aims to offer Walmart suppliers and sellers a wide range of customer engagement opportunities. Walmart Connect has also seen a 60 percent increase in advertisers during the third quarter of fiscal year 2025. This growth includes collaborations with suppliers, emerging brands, and nonendemic brands. For the time being, Walmart and VIZIO will continue to operate separately, with William Wang remaining as CEO of VIZIO, reporting to Seth Dallaire.
The acquisition deal specifies that VIZIO will become a wholly owned subsidiary of Walmart. As a result, VIZIO’s Class A common stock will no longer be traded on the NYSE. The transaction will be part of Walmart U.S.’s segment in future financial reporting. Walmart anticipates that the acquisition will slightly impact Earnings Per Share in the fourth quarter of fiscal year 2025 and throughout fiscal year 2026 due to transaction-related costs. To complete the purchase, Walmart plans to use cash or debt, with the transaction’s Internal Rate of Return expected to surpass Walmart’s existing return on investment.
For further details on Walmart’s acquisition of VIZIO, view Walmart’s announcement here.
