Walmart Closes $2.3 Billion VIZIO Deal as the Retailer Enters the Streaming Market

Walmart is entering the streaming market following its completion of a $2.3 billion deal with VIZIO.

In a press release, it was revealed that the retail giant can now better serve its consumers and improve their shopping experiences thanks to the acquisition of VIZIO and its SmartCast Operating System. Additionally, it will introduce novel and distinctive approaches for marketers to increase product discovery and establish meaningful connections with consumers at scale, enabling brands to get more out of their advertising expenditures via Walmart Connect, the company’s retail media division in the United States.

“VIZIO offers great products at great prices that customers love. They’ve always put customers at the center of their business – and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out,” said Seth Dallaire, executive vice president and chief growth officer, in a statement accompanying the press release. “VIZIO has also expertly changed their business over time, like building and quickly scaling a profitable advertising business. Pairing it with Walmart Connect will be impactful and allow us to invest in our business even further on behalf of our customers.”

“Since the inception of VIZIO, our mission has been to provide incredible value, great technology, and award-winning innovation,” said William Wang, CEO and founder of VIZIO. “Today, with the tremendous number of resources from Walmart, we will continue to further accelerate that mission around the best home entertainment experience.”

Walmart agreed to buy VIZIO and its SmartCast Operating System for $11.50 per share in cash, which translates to a fully diluted equity value of almost $2.3 billion, as was reported back in February.

Walmart Joins Chick-fil-A in the Streaming Game

The retail giant isn’t the only company entering the streaming market. Back in October, Chick-fil-A announced that it would be dropping a phone app in November that would feature all-original content such as podcasts and television shows.

Chick-fil-A started looking into other ways to engage customers as they were spending less time in the chain’s restaurants and more time utilizing drive-thru and delivery services. Families will be entertained with Chick-fil-A-branded content on the app whether they are eating a chicken sandwich at home, at the drive-thru, or in the restaurant.

“We’ve been paying attention to some research and conversations we’ve had with families that are our customers, and insights bubbled up that content and games are both adjacent to mealtime,” said Dustin Britt, Chick-fil-A’s executive director of brand strategy, entertainment, and media, per CNBC. “Our belief is, as we add value to their experience, then we’re giving them a reason to want to enjoy more Chick-fil-A with us.”