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TV Maker Vizio Sold For $2.3 billion To Walmart : How Walmart is Starting The Year With A Bang
On Tuesday, Walmart declared that it will acquire TV maker Vizio for $2.3 billion cash, with the intent of elevating its advertising business being the nation’s largest retailer.
The operating system, much like nemesis Samsung’s, enables the TV users to stream free ad-supported TV content. Statistics proves that FAST TV platforms such as Tubi, Roku Channel, Pluto and Freevee have experienced growth in both recognition and demand in the last few years.
A Bentonville, Arkansas-based big box retailer commented that since Walmart and its warehouse chain Sam’s Club have long sold TVs, the acquisition of the company and its SmartCast Operating System will “allow Walmart to connect with and serve its customers in new ways including innovative television and in-home entertainment and media experiences.”
Walmart mentioned the deal will “create new opportunities to help advertisers connect with customers, empowering brands with differentiated and compelling opportunities to engage at scale and to realize greater impact from their advertising spend with Walmart.”
The collaboration is also an effort to enhance Walmart’s existing media business in the U.S., called Walmart Connect, by “bringing together Vizio’s advertising solutions business with Walmart’s reach and capabilities,” the remark included. “These benefits would be further strengthened by the growth of connected TV platforms and Walmart’s industry-leading TV panel sales.”
“We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling,” suggested Walmart U.S. Chief Revenue Officer Seth Dallaire in the statement.
Vizio shares have already been touching sky high since the acquisition’s announcement. Its shares saw the growth of more than 15% in premarket trading when Walmart reported its fourth-quarter 2023 results. As soon as people heard about this potential, soon-to-be the chicken that lays the golden eggs, the stock closed Friday’s trading session at $9.53, indicating a hike of 29% shares sustained since Feb. 13
Not only Vizio’s, but Walmart shares also rose 4.3% in the premarket session and traders cheered the deal. Unlike the general phenomenon that the traders see in the market, shares of acquiring companies often fall when deals are introduced but this deal appears to be the exception. The stock closed Friday at $170.36, increasing about 7% since the beginning of the year.
