In February this year,Walmartannounced plans to acquire smart TV manufacturerVizio. The retail giant has now officially closed the acquisition of the budget-friendly TV brand, worth $2.3 billion.
The deal secures Vizio’s TVs and SmartCast operating system for Walmart. The retail giant hopes to use Vizio TVs to bolster its advertising efforts alongsideWalmart Connect, its retail media business in the U.S.
“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," said Seth Dallaire, Walmart U.S' Chief Growth Officer.
I’d consider these 5 factors before buying a Vizio TV
The budget TV brand has tempting prices, but there are a few compromises I’d be aware of.
Walmart has big advertising plans
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Vizio’s SmartCast operating system has over 19 million active accounts and, according toWalmart, has grown close to 400 percent since 2018. SmartCast lets viewers stream content for free by watching ads. For many budget TV brands, advertising is a massive source of revenue and eclipses revenues made from selling the actual TVs themselves.
According toThe Wrap, Roku made $908 million in advertising sales and subscriptions in Q3 2024, while its device’s revenue was $154 million.Walmart saysVizio’s Platform+ Segment, which consists of its advertising and data division, accounts for all thecompany’s gross profit. Walmart’s acquisition of Vizio could help bolster the retail giant’s efforts in the Smart TV category and aid Vizio’s ability to compete with Roku.
Vizio has run into legal troubles in the past. In 2017, it paid a$2.2 million fineto the Federal Trade Commission (FTC) to settle a lawsuit that accused the TV brand of collecting and selling its user’s data without their permission.
Walmart says Vizio will operate separately “for the foreseeable future” and that its CEO, William Wang, will remain in place. With Walmart owning Vizio now, it’s safe to assume you’re able to expect to see even more of its TVs lining the aisles of Walmart stores globally in the months and years to come.
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