Walmart’s ambitious leap into the realm of connected technology has reached a pivotal milestone: the mega-retailer has successfully completed its acquisition of Vizio, the renowned television manufacturer nestled in Irvine, California. This monumental $2.3 billion transaction, first unveiled to the world in February, aims to significantly enhance Walmart’s foothold within the burgeoning connected TV landscape—a sector poised to revolutionize targeted advertising by tapping into valuable viewer data.
Connected TV (CTV) is not merely an advertising segment; it stands at the forefront of digital evolution in the United States. With advertising expenditures expected to skyrocket by 22.4% globally in 2024, culminating in an impressive total of $25.9 billion—according to GroupM’s midyear forecast—this market beckons with alluring potential.
As part of this strategic merger, Walmart will embrace Vizio’s SmartCast operating system, a key asset that is anticipated to fuel the expansion of Walmart’s advertising initiative, known as Walmart Connect. While the integration of Vizio’s innovative products and software into Walmart’s TV offerings is on the horizon, the retailer remains coy about whether it will rebrand these televisions under its own Onn electronics line.
Vizio, founded in 2002, has flourished into a formidable player with a diverse ecosystem of devices and a robust smart TV operating system. SmartCast, in particular, boasts an impressive build-up of over 19 million active accounts—a staggering growth of nearly 400% since 2018. Vizio’s direct connections with prominent brands, many of which grace the ranks of the Fortune 500, underscore its prowess in the advertising arena. Remarkably, Vizio’s Platform+ division, primarily dedicated to its advertising endeavors, now constitutes the entirety of the company’s gross profit.
“We are thrilled to welcome Vizio into the Walmart family,” declared Seth Dallaire, Walmart U.S.’s executive vice president and chief growth officer. “Their commitment to delivering exceptional products at equally impressive prices resonates with Walmart’s core values. Vizio’s focus on customer-centricity is paramount, and we’re eager to merge our efforts to enhance omnichannel experiences.” He further lauded Vizio for its adeptness in evolving its business model, most notably in swiftly establishing a lucrative advertising venture that synergizes seamlessly with Walmart Connect.
William Wang, the visionary founder and CEO of Vizio, echoed this excitement. “From the very beginning, Vizio’s mission has been about delivering unparalleled value and cutting-edge technology. With the incredible resources supplied by Walmart, we are poised to catapult our mission even further, all while providing consumers with the ultimate home entertainment experience.”
In a world where technology and retail converge more intricately than ever before, this acquisition marks a defining moment—both for Walmart and the future of digital advertising. As these two giants unite, the possibilities seem limitless.
