Walmart closes deal to buy Vizio for $2.3 billion

The retail chain hopes with this acquisition to be able to "develop more of its own entertainment content."

Could Walmart become the next Amazon? The retail chain announced Tuesday that it closed an agreement to buy television manufacturer Vizio for $2.3 billion.

The agreement, which is completed after several weeks of rumors, will allow the multinational to "develop more of its own entertainment content." Vizio, despite being known for its televisions, also has the SmartCast operating system. This was announced by Walmart U.S. Executive Vice President and Chief Revenue Officer Seth Dallaire:

The acquisition of Vizio and its SmartCast Operating System (OS) would enable Walmart to connect with and serve its customers in new ways including innovative television and in-home entertainment and media experiences. It would also 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.

Vizio and Walmart, a ‘value’ merger

The tool has more than 18 million active accounts and is included in all Vizio devices in addition to being compatible with other services such as Apple Airplay as well as Amazon's Alexa. Walmart, explained Seth Dallaire, is "excited" about about the merger:

There are many reasons to be excited about this acquisition. We believe Vizio's customer-centric operating system delivers great viewing experiences at attractive prices. We also believe it enables a profitable advertising business that is expanding rapidly. Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us every week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.

Vizio CEO William Wang was also pleased with the agreement. As stated in the press release, the purchase by Walmart represents "the ideal next chapter in Vizio’s history":

We believe this is the ideal next chapter in Vizio's history. By bringing our capabilities and resources together, we’ll drive innovation and create even more value for our customers. Walmart’s approach is aligned with Vizio’s mission and vision, and our technology will help bring a scaled, connected TV advertising platform to Walmart Connect. This transaction delivers immediate and compelling value to Vizio stockholders and is a true testament to the hard work of the entire Vizio team.