Walmart Buys Vizio for $2.3B to Challenge Amazon in Ads

Walmart’s recent announcement of its intent to purchase Vizio for $2.3 billion marks a significant move in the retail giant’s strategy to strengthen its foothold in the advertising and media space. The acquisition, which has received unanimous approval from Vizio’s board of directors, is valued at $11.50 per share, all in cash. This strategic acquisition is expected to propel Walmart Connect, the company’s media and advertising arm, to new heights as it seeks to challenge Amazon’s dominance in the advertising sector.

Seth Dallaire, Executive Vice President and Chief Revenue Officer at Walmart U.S., expressed his enthusiasm for the acquisition, stating that it would “redefine the intersection of retail and entertainment.” Similarly, Vizio’s CEO, William Wang, highlighted the acquisition’s potential to provide Walmart Connect with a robust television advertising platform, thereby expanding the retail giant’s advertising reach and creating value for Vizio’s shareholders.

Walmart Connect’s innovative closed-loop system allows advertisers and brands to run targeted advertisements both online and in-store, with the ability to measure the impact of their marketing efforts on actual sales. This approach has resonated well with advertisers, leading to a 15% surge in Vizio’s premarket shares following the announcement.

One of the key attractions of this deal is Vizio’s strong customer base, with approximately 18 million active customers utilizing its SmartCast system. This customer base has grown substantially, experiencing a 400% increase since 2018, indicating a strong market presence and growth potential for Walmart Connect.

In a separate development, Walmart recently unveiled plans to open 150 new stores and remodel 650 existing stores across 47 states over the next five years. The first two new stores are scheduled to open in Santa Rosa Beach, Florida, and Atlanta in the spring, signaling Walmart’s commitment to expanding its physical retail footprint alongside its digital advertising efforts.

This acquisition is part of Walmart’s broader strategy to enhance its advertising capabilities and compete more effectively with Amazon and other major retailers in the advertising space. Since 2019, Walmart has been actively expanding its advertising business, initially through the acquisition of Polymorph Labs, a Silicon Valley-based advertising startup, which later evolved into Walmart Media Group and eventually Walmart Connect. This strategic acquisition of Vizio further solidifies Walmart’s position in the advertising market and underscores its commitment to innovation and growth in the digital era.