After a week of speculation, Walmart on Tuesday (Feb. 20) confirmed it has agreed to acquire television/media brand Vizio for $2.3 billion. The offer is $11.50 per share in cash and Vizio’s board of directors unanimously approved the planned deal.
The deal for the Irvine, Calif.-based company is expected to be completed this year with a short-term dilutive impact on earnings but long-term growth overall for its advertising business Walmart Connect.
If the deal goes through, Walmart would command more than one-fifth of the television market in the U.S. between Vizio and its existing Onn in-house brand, which is powered by Roku’s operating system, according to Statista. It is unclear if that will change once the merger is complete. Almost 70% of Vizio’s TVs are already sold at Walmart, according to the company’s regulatory filings. The acquisition would also give Walmart access to Vizio’s user base of nearly 18 million active users, ad viewership data and potentially the ability to track purchases of those ad views to products sold in Walmart stores.
Walmart confirms $2.3 billion Vizio deal; Walmart Connect to benefit
