Walmart to Buy TV Maker Vizio for $2.3B
Walmart has agreed to buy TV maker Vizio, the companies announced Tuesday, as the largest U.S. retailer grows its high-profit ad business, reports CNBC. Walmart will acquire Vizio for $2.3 billion, or $11.50 per share, in cash. The big-box retailer announced the acquisition as it reported its fourth-quarter earnings. Walmart and its Sam’s Club warehouse chain have long been major sellers of Vizio devices. In buying the company, Walmart touted the potential to boost its ad business through Vizio’s SmartCast Operating System, which allows users to stream free ad-supported content on their TVs. The move comes as Walmart tries to compete with Amazon.com's growing ad segment.
Total Retail's Take: The retail media network (RMN) frenzy continues. Retailers and brands are using RMNs to build comprehensive advertising offerings around their valuable first-party customer data. Large retailers have launched media arms such as Amazon Ads, CVS Media Exchange, Albertsons Media Collective, and Walmart Connect, to name a few. Walmart hopes its acquisition of Vizio will boost its Walmart Connect media business following the segment's 22 percent sales growth in the fourth quarter and 30 percent growth for fiscal year 2024.
Walmart’s control of the Vizio platform will give companies that advertise with the retailer a greater reach. In a news release, Walmart said Vizio’s SmartCast system has 18 million active accounts. The retailer also said it could offer “innovative television and in-home entertainment and media experiences” after it acquires the TV maker.
As retailers seek to diversify their revenue streams, selling data and media exposure is quickly becoming a complementary product line to their physical goods.
- Companies:
- Wal-Mart
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
