US retail giant Walmart has finalised the acquisition of consumer electronics company VIZIO, which will enhance customer entertainment offerings and support growth at its advertising division.
The completion follows the end of the mandatory waiting period stipulated by US antitrust laws.
Go deeper with GlobalData
The acquisition positions Walmart to innovate in customer service and shopping experience enhancements. It also presents novel opportunities for advertisers to engage with consumers through Walmart Connect.
As per the agreement signed on 20 February 2024, Walmart will acquire VIZIO, including its SmartCast operating system, in a cash transaction for $11.50 per share, leading to an aggregate equity valuation of almost $2.3bn.
In May 2024, the US Federal Trade Commission requested further details from Walmart and smart TV maker Vizio concerning their proposed $2.3bn acquisition deal.
With this transaction’s closure, VIZIO transitions into a wholly owned subsidiary of Walmart.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPost-acquisition, Walmart and VIZIO will maintain distinct operations. William Wang remains at the helm of VIZIO as CEO, reporting directly to Walmart US executive vice-president and chief growth officer Seth Dallaire.
Dallaire said: “VIZIO offers great products at great prices that customers love. They’ve always put customers at the centre of their business – and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out.
“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.”
Founded in 2002, VIZIO is recognised for delivering consumer electronics that combine value and innovation. The company’s SmartCast operating system and device suite have seen active user growth rise to 19 million accounts and achieve a 400% increase since 2018.
VIZIO’s Class A common stock will cease trading on the NYSE after market closure on 4 December 2024, with future financial reporting under the Walmart US division.
The acquisition will marginally reduce earnings per share in the fourth quarter of the fiscal year 2025 and throughout fiscal 2026 due to associated transaction costs.
Walmart will finance this acquisition through available cash reserves or debt instruments.
VIZIO CEO and founder William Wang stated: “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.”
