Walmart said it has finalized its acquisition of Irvine, California-based TV maker Vizio. The $2.3 billion deal, first disclosed in February, is designed to boost Walmart’s presence in the growing connected TV market, which mines viewer data to enhance targeted advertising.
CTV is among the fastest-growing advertising sectors in the U.S. with ad spend expected to grow by 22.4% globally in 2024 to $25.9 billion, according to GroupM’s midyear forecast.
As part of the deal, Walmart acquires Vizio’s SmartCast OS, which the retailer said will accelerate growth of its Walmart Connect ad business. While it plans to integrate Vizio’s products and OS into its TV product line over time, the retailer has not indicated whether it will rebrand the TVs under its Onn consumer electronics brand.
Founded in 2002, Vizio’s growing device ecosystem and its smart TV operating system, SmartCast, have amassed over 19 million active accounts, growing approximately 400% since 2018. Vizio says its direct advertiser relationships include many of the Fortune 500. Vizio’s Platform+ segment, which consists largely of its advertising business, now accounts for all the company’s gross profit, according to the company.
“Vizio offers great products at great prices that customers love. They’ve always put customers at the center of their business—and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out,” Walmart U.S. executive vice president and chief growth officer Seth Dallaire said. “Vizio has also expertly changed their business over time, like building and quickly scaling a profitable advertising business. Pairing it with Walmart Connect will be impactful and allow us to invest in our business even further on behalf of our customers.”
Added Vizio founder and CEO William Wang: “Since the inception of Vizio, our mission has been to provide incredible value, great technology, and award-winning innovation. Today, with the tremendous number of resources from Walmart, we will continue to further accelerate that mission around the best home entertainment experience.”
