The massive acquisition move by Walmart to get Vizio's business is now complete, as the renowned retailer closed the deal by offering $2.3 billion for the entire company. As previously revealed before, the top reason behind Walmart's aspirations to acquire Vizio is its advertising business, Platform Plus, which was said to help the retailer grow more of its ads focus.
It remains unclear what Walmart's plan is once it gets ahold of Vizio's ads business, but many have speculated that it will deliver more advertising placements to the televisions and make its campaigns better known to the public.
Walmart Successfully Acquires Vizio for $2.3 Billion
Walmart's latest announcement shared that it has now completed its acquisition of Vizio after almost 10 months of courting the company and the "expiration of the waiting period under federal regulations." Vizio saw a whopping $2.3 billion in this acquisition deal from Walmart which now makes them the proud owner of the renowned TV company and its SmartCast Operating System.
That being said, it was highlighted by Walmart that it pays high regard for Vizio's renowned advertising business that helped them profit over the years, and it is something that the retailer looks to add to their current offers.
"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 US executive vice president and chief growth officer.
More Ads Coming From Walmart Thanks to Vizio
As revealed by Dallaire, Walmart will integrate Vizio's "profitable advertising business" into Walmart Connect, but reports claimed that the retailer giant is also looking to use this ad model for its media business. It was speculated that more Walmart ads may appear on Vizio's smart TV sets in the future, but that is yet to be announced by the company.
That being said, acquiring Vizio also gives Walmart a chance to diversify its in-store products, growing more as a tech supplier, instead of focusing on retailing groceries and more.
Vizio TV's Ad-Supported Experiences
Vizio made a significant name in the tech industry for its ingenuity in offering affordable and cheap smart televisions in the market but infuses them with ads to profit from every deal they make. This has been the setup of Vizio's TVs over the past decade, with the company growing significantly because of this massive trade-off, as it attracted many customers to opt for its ad-supported TVs.
However, Vizio's popularity was also the center of controversies in the past, particularly as the US Federal Trade Commission (FTC) previously filed a complaint against the company for its alleged spying on users via their TV data. This ended with Vizio settling with the FTC and paying a sum of $2.2 million penalty after claiming that 11 million sets of its smart TVs are gathering personal information from users.
It was previously claimed by Vizio that it is "America's best-selling TV" because of its renowned business model that focuses on offering cost-effective televisions with significant features. Over the years, what kept Vizio profitable was its advertisement model which got the attention of Walmart, and the retailer who is looking to grow its business with ads has completed its $2.3 billion acquisition of the TV company.
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