Walmart will acquire television maker Vizio for $2.3 billion, the retail chain announced Tuesday.
The company said in a press release that the acquisition of Vizio and its smart TV operating system, SmartCast, will help grow Walmart's media business by “combining VIZIO's advertising solutions business with Walmart's reach and capabilities.”
“There is a lot to be excited about with this acquisition,” Seth Dallaire, Walmart's executive vice president and chief revenue officer, said in a statement.
“We believe VIZIO's customer-centric operating system delivers a superior viewing experience at an attractive price point,” he added. “We also believe this will enable a rapidly expanding and profitable advertising business.”
Walmart CEO Doug McMillon also said on Tuesday's earnings call that the acquisition of Vizio “will allow us to reach and serve our customers in new ways and do more for the customers who advertise with us.” He emphasized that it provides an opportunity for people to connect.
The company had a strong fourth quarter, with sales up 6% year-over-year to $648.1 billion, according to its latest earnings report.
Vizio CEO William Wang described the acquisition as “the ideal next chapter” in the company's history.
“Walmart's approach is aligned with VIZIO's mission and vision, and our technology will help bring a large-scale, connected TV advertising platform to Walmart Connect,” Wang said in a statement.
“This transaction creates immediate and compelling value for VIZIO shareholders and is a true testament to the hard work of the entire VIZIO team,” he continued.
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