Recently, Walmart made waves in the consumer electronics and advertising sectors by acquiring TV manufacturer Vizio in a deal worth $2.3 billion. This strategic acquisition is meant to strengthen Walmart’s foothold in these sectors as part of their innovative expansion plans.
Vizio’s range of Smart TVs, powered by the SmartCast Operating System, shall now fall under Walmart’s control. This enables Walmart to enhance its advertising capabilities and increase its connectivity with consumers through free content supported by ads.
The announcement of this deal saw a 16% increase in Vizio’s shares, displaying investor confidence in Vizio’s strategic move. In fact, the price continued an upward trend the following day, with a brief high of $12.15, demonstrating Vizio’s strong position in the market.
Walmart plans to incorporate the SmartCast Operating System into its advertising strategies. Seth Dallaire, executive vice president and chief revenue officer of Walmart USA, voices his support, saying the customer-centric operating system could provide superior viewer experiences at cost advantages, increasing revenue and ad business potential.
Walmart’s acquisition of Vizio is seen as a counter to Amazon’s growing influence in the advertising sector. This move is expected to expand the advertising reach of brands collaborating with Walmart, thereby allowing them a broader consumer engagement platform. Dallaire believes that the valuable customer data Vizio collects could improve the personalization and effectiveness of their advertisements.
With around 18 million active users on Vizio’s SmartCast system, Walmart aims to explore the streaming market further, providing innovative television and home entertainment experiences. This would boost Walmart’s standing in the growing streaming industry significantly.
This acquisition aligns well with Walmart’s plans to expand its media operations. With their media division, Walmart Connect, reporting a 22% increase in advertising sales, the purchase of Vizio is predicted to drive these figures higher, cementing Walmart’s place in the advertising industry.
