It’s a huge bet ostensibly on the smart TV market, though the real play here is the opportunity to generate more advertising dollars.
No longer a rumor, Walmart today announced it has entered into a definitive agreement with Vizio to acquire the TV maker for $11.50 per share in cold hard cash, which works out to a cool $2.3 billion (or thereabouts). It’s a huge bet ostensibly on the smart TV market, though the real play here is the opportunity to generate more advertising dollars.In a press release announcing the pending-purchase, Walmart notes that advertising revenue from Vizio’s SmartCast operating system accounted for the lion’s share of the company’s growth over the past half decade.
„There is a lot to be excited about with this acquisition,“ said Seth Dallaire, executive vice president 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.
