Walmart has officially added TV manufacturer Vizio to its corporate empire, marking a pivotal expansion into the smart TV and advertising industries. The retail giant announced the completion of the $2.3 billion acquisition on Tuesday, setting the stage for significant changes in both sectors.
Expanding Walmart’s Portfolio
This acquisition not only brings a prominent TV brand under Walmart’s umbrella but also grants the retail giant access to Vizio’s advanced SmartCast OS platform. With 19 million active accounts, SmartCast OS collects vast amounts of user data, which has become the cornerstone of Vizio’s business model. The majority of Vizio’s revenue stems from its advertising platform, making this acquisition a strategic move for Walmart.
A New Frontier in Advertising
The integration of Vizio is expected to intensify competition for advertising revenue. Combined with Walmart’s existing smart TV brand, Onn, this acquisition positions the company to capitalize on the growing demand for targeted advertising. Vizio’s technology and data capabilities will enable Walmart to offer advertisers a powerful platform to reach consumers, potentially reshaping the advertising landscape.
The Road to Finalization
Walmart initially announced its plans to acquire Vizio in February, following months of speculation about the deal. With the acquisition now finalized, Walmart is set to integrate Vizio’s technology into its operations. This move underscores Walmart’s commitment to expanding its digital and advertising capabilities while strengthening its foothold in the competitive smart TV market which is a very welcomed development that scales up more business.
Implications for the Industry
Industry analysts anticipate that Walmart’s acquisition of Vizio will disrupt the advertising market. By leveraging Vizio’s data-driven advertising platform alongside its retail and online ecosystem, Walmart aims to enhance its advertising strategies and unlock new revenue streams. This development not only solidifies Walmart’s presence in the smart TV space but also challenges existing players in the advertising industry.
