Walmart buys Vizio – The Verge

After announcing plans to acquire Vizio in February, Walmart officially became the company’s owner. Transaction worth $2.3 billion closed On Tuesday. The retail giant says the acquisition will help boost its advertising business, as Platform Plus – the TV maker’s advertising and data division – “takes care of all functions of the company”. [Vizio’s] Gross profit.”

This deal has raised concerns Among privacy advocatesBecause Vizio has gotten into trouble in the past with advertising and data tracking. In 2017, it Paid a fine of $2.2 million To settle a Federal Trade Commission lawsuit that accused it of tracking viewers without their consent.

The acquisition by Walmart could help Vizio compete with other budget-friendly TV brands that rely on advertising as a significant source of revenue. Stop, Joe started selling its own TVs last year, Earned $908.2 million in advertising sales and subscriptions in the third quarter of 2024, with average revenue per user of $41.10, while Vizio’s last earnings report showed it was making about $37.17 per user.

Despite the acquisition, Walmart and Vizio will continue to operate independently “for the foreseeable future.” Vizio CEO William Wang will also remain in his post.

“Vizio has also efficiently transformed its business over time, such as building a profitable advertising business and rapidly expanding it,” Seth Dallaire, executive vice president and chief development officer of Walmart US, said in the announcement. “Combining it with Walmart Connect will be impactful and allow us to invest even more in our business on behalf of our customers.”